Hi All,
I’m looking to build an investment property in the next 6 months (have already paid the holding deposit on a block of land).Does anyone know whether I can claim the interest paid on the investment loan from the time the block settles to the time the first tenant moves in, which could be 4-5 months down the track? Or can I only claim the interest component once the property becomes a ‘tenantable’?
Also, if the block of land was to settle in this financial year, can I claim the closing costs against this year’s tax even though the land is ‘unusable’ yet, or do I have to wait until next financial year to start claiming costs?
Many thanks in advance.
I once boght a block & build on it for rental. My accountant claimed for all the interest costs including when the block was vacant.
I think the logic behind that was the original intent was to have an income producing property on it.
Thanks for that info Michael & trueblue. I’m pleased to learn that I can deduct the tax – it makes the project far more feasible.[
]As mentioned in my other post, getting an acceptable price to build is going to be the biggest challenge I feel! In case you’re confused, I’ve bought 2 blocks in the estate. One will be built on as our primary house, and the second for my IP.
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