Hi,
I am a first home buyer and recently received the 7k First home owners grant(NSW resident), but because my property was over 500k I had to pay about 6.5k in stamp duty. My question is because I am renting it out for the first 8 months before I move in, am I able to claim:
– Stamp duty (not sure)
– Legal Fees (not sure)
– Loan fees (not sure)
– Strata search fee (not sure)
– Interest rates (quite sure I can claim this)
– strata/property management/council/water etc (quite sure I can claim this)If someone could clarify the item's I'm not sure about above I would greatly appreicate your help.
Thank you
JI would check on the length of time the property will be a rental before you move in – in Qld you can only rent a PPR to an existing tenant (or the seller) for 6 months after settlement.
I will definitely check, I have signed a 6 month lease with the existing tenants, however im looking to move in a month after so I might extend it for a month on an expired lease. Thanks for your reply.
Hi fxtrader8,
your correct in that the last two items on your list or deductible against your rent income (along with a bunch of other things)
The only other item on your list which is deductible against the rent is Loan fees. Generally, fees which occur prior to your making the first repayment on the loan are considered borrowing costs. Which are written off over the first 5 years of the loan. This type of cost is commonly referred to as borrowing costs. Monthly or annual admin fees are fully deductible in the year in which they occur.
The remaining costs are not deductible against the rent income. They are however deductible against the sale price of the property for the purposes of capital gains tax.
The ato website has a great publication which will outline everything else you can claim “rental properties 09/10” :
http://www.ato.gov.au/individuals/content.asp?doc=/content/00237831.htmHi Mr5o1,
Thank you for your reply, it makes sense to me now. I guess the other stuff I can look at is depreciation and things like that. I now know that I won't have to worry about the stamp duty until I see the property.
Thanks again.
Cheers
J
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