Could someone please let me know if the same tax deductions (eg, depreciation of fixtures & interest) are possible under vendor financing as with negative gearing property?
Does the ATO view a wrapped house as ‘…for investment purposes’?
Michael [
]Michael,
When you say wrapped do you mean instalment contract or Lease option ?I would check with your accountant but I use instalment contracts and I cannot get those deductions as I no longer “own” the property.
Enjoy
AD [:0)]
A great deal of talent is lost to the world for want of a little courage. Every day sends to their graves obscure men whose timidity prevented them from making a first effort.
-Sydney SmithHi Micheal
I agree with Andrew re the deductions except that the interest is still a cost to your business. As a cost the interest is offset against the income derived from the wrap.
So as a result the net income that you make from your wrap increases your taxable income (Damm!!! LOL)
Cheers
AD & Ziz,
Thanx for your feedback & assistance. I think that the instalment contract tax thing has been answered.
Short of drawing up a network of companies to offset the tax, are there any deductables directly related to the wrap?
Your thoughts???
Michael [
]
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