Please advise what circumstances arise when you can claim your mortgage repayments as a business expense ?
Is it if the residential property/loan is in the name of the company considering capital gains tax is charged when the property is sold ?
Thank you.
You've lost me on the question…You can only claim the interest if it is an income producing property ie if it has been recently purchased and is vacant, you can't claim an interest expense until it is tenanted – doesn't matter if it is a personal or business asset (unless you have numerous properties and conducting property rentals is your business).
As for caital gains tax, cgt is charged when you sell, income tax or payg is annually. CGT is handled differently if you own the property personally as opposed to within a company (no discount).
Thanks for the answer.
Can you claim the mortgage repayments if your using a portion of your own home to run a business such as a home office ?
Thank you.
Hello Joseph12
Yes you can but there will be CGT ramifications when you sell. You have to work out whether it's worth it in the long run.
Hope this helps
ElkaScott No Mates wrote:You've lost me on the question…You can only claim the interest if it is an income producing property ie if it has been recently purchased and is vacant, you can't claim an interest expense until it is tenanted – doesn't matter if it is a personal or business asset (unless you have numerous properties and conducting property rentals is your business).As for caital gains tax, cgt is charged when you sell, income tax or payg is annually. CGT is handled differently if you own the property personally as opposed to within a company (no discount).
Agree in principle. Technically, you can start claiming interest when the property is available for rent, ie, when it is actively marketed for rent but is presently vacant.
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