Hey fellow investors,
I recently purchased a property and i'm putting the .25 depoist on monday. i was just wondering if it is better for tax to try and get the property to settle before 30/6 or to try and get it settled in July. because i know if it is negatively geared you can claim some money for stamp duty etc…Or can you just do that in your next years tax? Any help would be greatly appreciated.
Tony
Tony Fleming | Triumphant Property Group
http://www.triumphantpropertygroup.com.au
Email MeNSW Buyer's Agent specialising in Western Sydney-Blue Mountains-Orange-Albury
Hi Tony,
You should probably ask your accountant, but just so you know, the stamp duty isn’t a borrowing cost. It is not claimed a deductible expense against your rental income, but it becomes part of your cost base, and only comes into play if you sell. to offset your capital gain.
We also bought a property this week, so it will settle 18/6 I think. So we will only be able to claim a portion of our borrowing costs this year. They have to be claimed over 5 years, so this years claim for us will be a small amount of that, representing about 12 days of the 1825 days over which it is claimed.
The link below might help.
http://www.ato.gov.au/individuals/content.asp?doc=/content/00113245.htm
hope this helps.
Borrowing costs are claimed over 5 Years or the term of the loan whichever is shorter and proportionilised in Year 1.
If you took a 3 Year Interest only loan then the deduction would be over 3 Years.
Richard Taylor | Australia's leading private lender
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