I wanted to confirm that any upfront borrowing costs I pay would not be deductible if the property is in fact my PPOR for the first 6 months of ownership before I move out and it becomes my IP.
Is there a way around this without forfeiting my right to stamp duty concession as a first home buyer?
Thanks
Hi Jt32,
Yes you are correct in that the proportion of borrowing costs for the period the house is your PPOR will not be tax deductible.
We have an example on our website that shows how borrowing costs are claimed in your tax return. Using that example the annual tax claim is only $303 so all you’d be missing out on is a tax claim of $151. Here’s the link:
http://www.propertydivas.com.au/3TaxMang/NegGearing.aspx
AmandaBS
http://www.propertydivas.com.au
FREE online Property Resources“It is better to be inconspicuously wealthy, than to be ostentatiously poor…”
Thanks AmandaBS, your example made it very clear.
Much appreciated.
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