Forums / Property Investing / Creative Investing / Claiming Progress Payment – Rental Prop Construction

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  • Profile photo of new2investnew2invest
    Participant
    @new2invest
    Join Date: 2010
    Post Count: 37

    Howdy..

    Next Year My Wife and I will be building an investment property From Feb 2014 with expected completion date end of June/mid of July.

    We are expecting we will have a tenant around September 2014.

    I want to know if I can claim the interest paid on the progress payment made during the construction so that when I do my tax return for yr 2013/2014 I can include the interest.

    Is that possible?

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,190

    Possible, depends on the circumstances.

    see steele case

    Terryw | Structuring Lawyers / Loan Structuring Pty Ltd
    http://propertytaxbook.com.au/
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Aust wide) http://propertytaxbook.com.au/

    Profile photo of GrantMckGrantMck
    Member
    @grantmck
    Join Date: 2013
    Post Count: 36

    HI,

    First thing is to talk with your Accountant, but I am very sure that if you can demonstrate to the ATO that your intention from day one was that the property is for Investment, you can claim the interest and costs. How do you do this, get a Property Investment Cash Flow Analysis report by an external company, get  Rental Appraisals from a local Real Estate Agents, I suggest at least two for your own reference, and make sure your loan documents and accounts state that the loan is for Investment.

    Cheers Grant

    Profile photo of Jamie MooreJamie Moore
    Participant
    @jamie-m
    Join Date: 2010
    Post Count: 5,069

    I'm not an accountant but I can't see why you couldn't.

    Cheers

    Jamie

    Jamie Moore | Pass Go Home Loans Pty Ltd
    http://www.passgo.com.au
    Email Me | Phone Me

    Mortgage Broker assisting clients Australia wide Email: [email protected]

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