All Topics / The Treasure Chest / non investment into an investment?

Viewing 6 posts - 1 through 6 (of 6 total)
  • Profile photo of sparticussparticus
    Member
    @sparticus
    Join Date: 2003
    Post Count: 3
    July 8, 2003 - 5:06 pm

    Hi all

    Recently I bought a large block of land in WA, which I intended to build on one day. I bought this block as a non-investment purchase, is it possible to turn this into an investment and claim all expenses?…..and if so am I required to pay more in stamp duty or other expenses.

    Or does the property need to generate an income for it to be a tax benefit.

    Any help..Many thanks in advance

    Sparticus

    Profile photo of DramDram
    Member
    @dram
    Join Date: 2003
    Post Count: 82
    July 9, 2003 - 1:00 am

    Yes, to allow you to claim expenses on an investment, the property must produce some sort of income. (the deductions are to offset the income produced by the property)

    I believe you can start to claim expenses once you have built the house/unit/whatever and it is made available for tennants. ie: it is available to produce an income.

    Someone please correct me if I’m wrong.

    Cheers

    Profile photo of aussierogueaussierogue
    Participant
    @aussierogue
    Join Date: 2003
    Post Count: 983
    July 9, 2003 - 1:25 am

    sparticus, i am doing the same thing. stamp duty will not be payable when building on a vacant block (this may depend on the price of the block). if in doubt on what you can claim you should keep a log book of all the expenses you accrue from now on and then ask your accountant.
    apparantly you dont necessarily need to have an asset that is already making money in order to claim. the promise of future income may be sufficient.

    cheers

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213
    July 9, 2003 - 2:51 am

    I remember reading an Investors Club newsletter a few years ago where they mentioned a way to be able to legally claim costs on land. I think if it was intended to eventually be an IP. So it may be possible-check with a GOOD accountant.

    Terryw
    [email protected]

    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

    Profile photo of Stuart WemyssStuart Wemyss
    Member
    @stuart-wemyss
    Join Date: 2003
    Post Count: 598
    July 9, 2003 - 2:54 am

    Hi

    There are heaps of Case Law and tax rulings on this. It’s a very messy area. You can claim interest cost, etc. in some circumstances. Definitely refer to your tax adviser.

    Cheers

    Stu

    Property & Finance News
    at http://www.prosolution.com.au

    Profile photo of sparticussparticus
    Member
    @sparticus
    Join Date: 2003
    Post Count: 3
    July 9, 2003 - 4:38 am

    Thanks all, much appreciated!!!!

Viewing 6 posts - 1 through 6 (of 6 total)

The topic ‘non investment into an investment?’ is closed to new replies.