Hi, I'm looking at the off the plan purchase and having never done this before i had a few questions.
1. Is the depost (if not using a deposit bond) claimable in personal tax in the year you paid it or does settlement have to occur?
2. Stamp Duty. I understand you pay this 12 months after exchnage of contract (if long settlement). Can this be paid earlier, and being in the A.C.T. claimable in the financial year you paid it?
Thanks in advance.Hi Ez
Where are you buying? I'm about to exchange on an OTP apartment up north.
I'm not an accountant but I'll have a crack at you questions.
1. How are you paying for the deposit? If it's via finance (ie. a LOC that's been set up for investment purposes) than the interest payable should be tax deductable.
2. Yep, you pay stamp duty within 12 months of exhange. Yep, it's claimable in the year you paid. If you time it right, you could pay stamp duty towards the end of June 2011 and claim back in July 2012. Canberra is special, the leasehold system allows for stamps to be claimed within first year (instead of taking it off the cost base when working on CGT).
Hope that helps
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
a deposit is not claimable at all. It is a capital expense.
you may be able to claim interest on the deposit money, depending on your circumstances.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Thanks Jamie and Terry, you're posts are extremly useful as usual. Thanks for taking the time – much appreciated.
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