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Viewing 8 posts - 1 through 8 (of 8 total)
  • Profile photo of chanakyachanakya
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    @chanakya
    Join Date: 2012
    Post Count: 26
    April 28, 2013 - 10:35 am

    If I purchase a vacant land can I use negative gearing ( I understand, as no income is generated we cant -ve gear ). Can I claim on anything at all?

    Profile photo of PascoePascoe
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    @pascoe
    Join Date: 2010
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    April 28, 2013 - 10:50 am

    From what I understand….No.

    Profile photo of PLCPLC
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    @plc
    Join Date: 2012
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    April 28, 2013 - 10:53 am

    You need to get seek professional assistance on this, but from memory if your sole intention is to use the land to build property to rent out, then the loan interest is deductible even if nothing has been constructed yet.

    Think there was some tax ruling on it years back.

    Cheers

    Tom

    PLC | Phoenix Loan Consulting
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    Profile photo of Richard TaylorRichard Taylor
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    @qlds007
    Join Date: 2003
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    April 28, 2013 - 12:04 pm

    Land can certainly generate an income (i have 4 blocks in my SMSF which i lease out to a haulage company to store their heavy vehicles) so as long as you have the intension to either rent it out or can prove you purchased it with a view to constructing a dwelling on the land then you should be able to claim the interest and associated expenses.

    Cheers

    Yours in Finance

    Richard Taylor | Australia's leading private lender

    Profile photo of TheFinanceShopTheFinanceShop
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    @thefinanceshop
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    April 28, 2013 - 10:05 pm

    Is your question based on the lender's take on negative gearing or from a taxation point of view?

    Regards

    Shahin

    TheFinanceShop | Elite Property Finance
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    Profile photo of chanakyachanakya
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    @chanakya
    Join Date: 2012
    Post Count: 26
    April 28, 2013 - 10:29 pm

    Hi Shahin,

    Yes

    Profile photo of Jamie MooreJamie Moore
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    @jamie-m
    Join Date: 2010
    Post Count: 5,069
    April 28, 2013 - 11:58 pm
    PLC wrote:
    You need to get seek professional assistance on this, but from memory if your sole intention is to use the land to build property to rent out, then the loan interest is deductible even if nothing has been constructed yet.

    Think there was some tax ruling on it years back.

    Cheers

    Tom

    I'm not an accountant but I recall something similar. In any case, get professional advice on this before making a move.

    Cheers

    Jamie

    Jamie Moore | Pass Go Home Loans Pty Ltd
    http://www.passgo.com.au
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    Mortgage Broker assisting clients Australia wide Email: [email protected]

    Profile photo of mbuildingmbuilding
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    @mbuilding
    Join Date: 2012
    Post Count: 28
    April 29, 2013 - 7:43 am
    PLC wrote:
    You need to get seek professional assistance on this, but from memory if your sole intention is to use the land to build property to rent out, then the loan interest is deductible even if nothing has been constructed yet.

    Think there was some tax ruling on it years back.

    Cheers

    Tom

    here it is,

    http://law.ato.gov.au/atolaw/view.htm?rank=find&criteria=AND~steele~basic~exact&target=JA&style=java&sdocid=AID/AID2001479/00001&recStart=1&PiT=99991231235958&Archived=false&recnum=3&tot=210&pn=ALL:::ALL#HIT2

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