Hi All
Just a quick question on the timing of when I can interest. basically we have built an investment property which has taken about 7 months.
My question is can I claim the interest to date or can I only claim the interest as a tax deduction going forward as it is now an income producing asset ?
My accountant thinks it is from the beginning as the intention was to create an income producing asset but I am not sure.
Any help is appreciated.
I believe your accountant is right.
I got a ruling from the tax department on this in May 2007. You definitely can claim a deduction on the interest to date. Your accountant is correct.
It's all got to do with your original intention. If you bought the land with the intention of building on it for investment purposes, you can claim all the interest that you paid. You don't have to build on the land straight away. You can wait a year or two before you build.
thanks guys I appreciate the advice
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