Gidday all,
I am thinking about buying a block of land and then holding it for a year or two until I build.
I know that interest payments wont be deductable because I wont have any income generated from the block.
Can anyone here come up with some ideas how to generate a small income from the block so I can claim interest as a deduction. $50 per month would be fine.
I’m sure this is achieveable, I just need someone to help me think outside the box.
If I could generate a small income, do you think the ATO would be happy with this????
Mick[
]when you start generating income after completion you can claim the ‘dead’ interest on the block. I would just sit tight – cash flow isn’t as good but saves doing dodgies on the ATO.
But if I could come up with a legitimate (small) income from the block I could ask to the ATO for a ruling on it and if it was then given the OK then it would be dodgy at all.
Mick
Where is the block? If it’s in town, i cant really think of ways.
For instance i’m looking for a block for storage of a houseboat but it must be near the Murray River or not too far from it and away from where theives might target it. I would easily pay $50 a month to rent it. Maybee something like this might work in your area?
If it’s outta town and there is a good fence around it, can it be aggisted to run, a horse on it, a cow a couple of sheep? Though i tempary electrical fence is not hard to put up.
Hi There.
Have you spoken to a GOOD accountant. I beleive there may be a way to claim the expenses if the original purpose if to build an investment proeprty. I can’t remember the reasoning behind it now.
Terryw
Discover Home Loans
North Sydney
[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
I think you’re right Terry, I heard that if you intend to complete construction of an investment property within two years you are able to claim all of the loan interest in the meantime. If you don’t complete construction though you do have to pay it all back.
Again – accountant check needed.
Good luck!
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Mel
[email protected]This is good to know guys,
Thanks for the info, ill look into it.
I am in the same situation, where I will be settling on a block of land in a few months and plan to sit on it for a year or so before building to see what happens around me (new estate). This would means some big tax savings!!Agistment for a farmer, storage for a truck driver or plant operator, parking if the need is there.
Perhaps storage of a boat or someone building or maintaining a boat, maybe erect a garage and store cars or equipment in it.
Just some ideas!
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.
Have you thought about horse agistment ( sp? )
Would save on emowing, and free fertiliser [:p]“Looking forward to the day when I can tell the boss where to go”
I guess I would consider intent. Watch for the buy and holds then sells, CGT…..Hey guys the ATO does pretty well, you know, property bought pre 85 and that after…was it 85? or 89 oh well….
cheers
Elves
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