Hi – I am new to the forum and would appreciate some advice from the more experienced investors.
We have purchased a run down investment property. Settle in mid-March.
We intend renovating prior to renting. Then holding the property for the long term.
How do we stand with the interest payment we need to make prior to the property being rented? Can we claim these payments?
We are currently in need of an on the ball accountant in Brisbane any recommendations on one would also be great.
Thanks,
JackI cant answer those except to say, check around, an accountant is still a personal choice, do some yellow page looking, phone them up aska few questions, see how you feel with the answers.
you dont ask you dont get. a lot of people dont like to say who their accountants are for good reasons, especially on a forum like this.
Jack,
As long as your original intention was to rent the property and that is what you do ie don’t change your mind and move into it yourself. Then the interest from the date of purchase is tax deductible (Steeles Case)
If you send me your e-mail address I will send you a free booklet on rental properties it has a section on the difference between repairs and improvements. Building depreciation may also apply if the improvements are structual.
Please put rental property booklet in your subjectJulia I thought that the ruling was that the property must be ‘available for rent’ – or is that really only relevant for holiday houses?
Cheers
MelMelbear,
Available for rent is a bear minimum if there has been any private use of the property but in Jack’s case its investment related all the way.
Steele’s case went so far as allowing interest on vacant land that was one day intended to be income producing.
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