Claiming Progress Payment - Rental Prop Construction

Viewing 4 posts - 1 through 4 (of 4 total)

new2invest
Participant
@new2invest
Join Date: 2010
Post Count: 38
July 17, 2013 - 9:50 am
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?
Terryw
Participant
@terryw
Join Date: 2001
Post Count: 16,213
July 17, 2013 - 9:55 am
Possible, depends on the circumstances.
see steele case
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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GrantMck
Member
@grantmck
Join Date: 2013
Post Count: 36
July 17, 2013 - 9:58 am
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
Jamie Moore
Participant
@jamie-m
Join Date: 2010
Post Count: 5,069
July 17, 2013 - 11:16 am
I'm not an accountant but I can't see why you couldn't.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
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