Hi everyone!
What happened on the 7th of November? If i can capitalise investment property interest it may help me a lot because i have a few properties but also debt on my own home. RocketG’day Rocket….
The ATO lost. Legislation would have to be changed
for you to now be unable to capitalise interest on IP Loan(s).Terry sent this link…
Talk to your Bank and perhaps your accountant….
http://www.propertyinsider.com.au/echo/external/WebTemplate.cfm?clientid=30&fullstory=950&periodid=137Cheers
Bill
Bill O’Mara
Real Estate,Mortgages, Option Writing & Forex. [email protected]Hi,
At this stage our brokering firm is still of the opinion that the ATO may make new rulings which could retrospectively disallow this type of claim resulting in v large tax bills for investors, so we are not recommending it to clients.
That said if clients understand the risk they are undertaking and still wish to proceed then of course we’ll assist them. Just don’t count the ATO out yet … the sting is often in the tail and they are not happy about the amount of money being dished out for property investment at the moment. I’d be interested to know what other brokers on the forum think …. [?]
A ‘fact’ from a quantity surveyor last week, hence possibly true possibly not, was that for end of 2002 financial year there was about $1B extra claimed as expenses by property investors over and above income … this makes the ATO and the government a bit cranky [}
] despite the money they rake in from all the other property taxes they are on a mission to clamp down on I/P claimable expenses.[
]
Mel
[email protected]I am with Melanie on this one. I wouldn’t be advising clients to set up this structure until it is finalised.
ATO rulings can be retrospective which would make me feel bad.
Simon Macks
Mortgage Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Thanks guys, appreciate your opinions.Do you think the way to go might be to set it up but leave redraw funds available in my home loan to cover any future rulings? Thanks Rocket[8D]
I’ve heard about that type of loan. apparently the ato has lost that appeal several times, finally ending up in the supreme court. it was then over ruled and the ato won. obviously the hart family have continued to push. the hart family by the way had companies with a vested interest finance the appeals etc.
as for IP property the RBA sent its report to the government recommending that depreciation etc be reviewed and more in line with the U.S, canada etc. this is in an attempt to bring down property prices as they say that its investors pushing prices up
] despite the money they rake in from all the other property taxes they are on a mission to clamp down on I/P claimable expenses.
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