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If I purchase a vacant land can I use negative gearing ( I understand, as no income is generated we cant -ve gear ). Can I claim on anything at all?
From what I understand….No.
You need to get seek professional assistance on this, but from memory if your sole intention is to use the land to build property to rent out, then the loan interest is deductible even if nothing has been constructed yet.
Think there was some tax ruling on it years back.
Cheers
Tom
Land can certainly generate an income (i have 4 blocks in my SMSF which i lease out to a haulage company to store their heavy vehicles) so as long as you have the intension to either rent it out or can prove you purchased it with a view to constructing a dwelling on the land then you should be able to claim the interest and associated expenses.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Is your question based on the lender's take on negative gearing or from a taxation point of view?
Regards
Shahin
TheFinanceShop | Elite Property Finance
http://www.elitepropertyfinance.com
Email Me | Phone MeResidential and Commercial Brokerage
Hi Shahin,
Yes
PLC wrote:You need to get seek professional assistance on this, but from memory if your sole intention is to use the land to build property to rent out, then the loan interest is deductible even if nothing has been constructed yet.Think there was some tax ruling on it years back.
Cheers
Tom
I'm not an accountant but I recall something similar. In any case, get professional advice on this before making a move.
Cheers
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]
PLC wrote:You need to get seek professional assistance on this, but from memory if your sole intention is to use the land to build property to rent out, then the loan interest is deductible even if nothing has been constructed yet.Think there was some tax ruling on it years back.
Cheers
Tom
here it is,
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