is this tax deductable?

Viewing 5 posts - 1 through 5 (of 5 total)

miike
Participant
@miike
Join Date: 2008
Post Count: 111
April 6, 2008 - 11:51 pm
Hi All,
My situation is, I am looking at purchasing a property.
Loan type will be: IO + offset
Property will be: PPOR
Will be utilising the FHOG.
The property will be in my name so I can claim the FHOG and use as a PPOR.
Looking at doing this for approx 6-18 months.
My questions:
1) Is the IO payments tax deductable in my situation; and
2) If i do any repairs/reno's to the property what can be claimed as a tax deduction (i.e, tools, paint, tiles, labour for contract work, etc).
Much appreciated.
Scott No Mates
Participant
@scott-no-mates
Join Date: 2005
Post Count: 3,856
April 7, 2008 - 7:30 am
To put it simply, as a PPOR, there is no deductibility for any costs whatsoever.
virgininvestor
Member
@virgininvestor
Join Date: 2007
Post Count: 37
April 7, 2008 - 9:34 am
Bummer!
Scott No Mates
Participant
@scott-no-mates
Join Date: 2005
Post Count: 3,856
April 7, 2008 - 9:55 am
Don't forget, any capital gain that you make on your ppor is tax free – it is not all bad news.
Terryw
Participant
@terryw
Join Date: 2001
Post Count: 16,213
April 7, 2008 - 10:20 am
If you were to move out and rent your place after 6 months you could claim all interest and repairs from that point, AND it is still possible to avoid CGT on the sale.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email Me
Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au