My Husband and I are looking to buy a house as our primary residence and have found one we would like to purchase. We dont have alot of money to go towards a deposit and are really doing it tight to jump in, but I truely believe now is the time. We are not entitled to the 1st homeowners grant and are really concerned about the stamp duty we are going to have to pay. Here's the thing, the house currently has tennants on a 12 month lease occupying it, and I am interested to know if we bought it and left the tennants in it what would we be entitled to claim from it at TAX time. Would we be able to claim back the loan set up fees and the stamp duty etc. The tennants would move out no ealier than December this year so does that impact the tax benifits. We are currently renting ourselves and can afford to pay our rent and pay a mortgage if we include the rent we would recieve from the home purchase. Hope that makes sense.
Any advice or tips will be HUGELY appreciated.
You could probably claim all general expenses associated with the house such as rates, insurance, interest, travel, etc. You could also claim depreciation of building and fittings, and loan costs such as app fees, LMI, stamp duty on the loan etc – but these would be claimed over 5 years.
You could only claim these deductions while the property is rented or while actively looking for a tenant. Your property will be subject to CGT for this period, but there should be little CG in such a short period.
Stamp duty is not claimable (unless in ACT) until you sell.
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
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