When you purchase an IP and finance the property 100% plus purchase costs, what items are able to be added to the purchase price so that you can claim the interest as a deduction?
Off the top of my head there is:
-Purchase price
-Stamp duties
-Loan costs
-Conveyancing fees and disbursements.Are there any others? i.e can you claim other costs paid at settlement such as payment of rates, building reports, pest inspections, strata levies etc.
Any response would be appreciated. [
]The ATO site has a great booklet you can download on rental properties that goes through the list of what you can/can’t claim – very user friendly and easy to follow!!!
Cheers.
Hi,
Stamp duty and conveyancing costs are “added” to the purchase price for the purposes of CGT in the event you sell the property. There is no direct tax deduction available on these items.
Borrowing costs such as Mortgage Registration and Establishment Fees are deductible over the life of the loan or 5 years, whichever is the shorter.
Cheers
The interest can be claimed for anything purchased that is investment related.
Legals
Stamp duty
mortgage stamp duty
inspection flights/hotels (maybe?)
repairs
improvements
gardening
cleaning
rates
inspection reports
strata levies
buyers agent fees
research
etcKeep your cash to pay off your home loan and borrow the rest (if you can).
Terryw
[email protected]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 Terry!!!
That’s exactly the info I wanted.
Cheers Brett [8D]
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