Forums / Getting Technical / Legal & Accounting / Council rates of vacant land used as are Tax offset against income

Viewing 5 posts - 1 through 5 (of 5 total)
  • Profile photo of Dali TDali T
    Participant
    @dali-t
    Join Date: 2006
    Post Count: 3

    Hi everybody,
    I bought are block of land 10 years ago, paid in full. I had intention to build house on it but then 3 years ago I used equity in land to buy investment property bonded that land with the investment. My question is can I claim Council rates of that vacant land as are Tax offset against my income and how far back. Also to maintain the block, cut the gras and to travel 265km to get there and same distance to get back home, can I claim travel expenses and to maintain the land. Please help me out as I am not sure.
    Kind regards,
    Dali-T

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,058

    Did you plan to build a main residence on it or an investment property? Is there a house on it now?

    “3 years ago I used equity in land to buy investment property bonded that land with the investment”
    Do you mean you used the land as security for a loan used to buy an investment property?

    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 Dali TDali T
    Participant
    @dali-t
    Join Date: 2006
    Post Count: 3

    Hi Terry,
    Yes I planed to build are holiday house as are owner builder, got it approved by Council, invested around 70K to start build than I found myself in hot water as couldn’t obtain finance to continue. So I decided to bound that with the investment property and wait until I qualify for loan. My main reidence is in Sydney and the property is in my name, so I never wanted permanently to move once I build. What I wanted is to build are holiday house and rent it out for holidays and use when I wanted. I never claimed any expenses that I had, for example Council rates…Just wondering if I can because this financial Year I paid are lot of Tax… Any advise..I will really appreciate that are lot, Thanks
    Dali T

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,058

    In that case none of the expenses would have been deductible. But keep records of them as some of the costs could be used to reduce CGT when you sell – not the travel costs though.

    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 Dali TDali T
    Participant
    @dali-t
    Join Date: 2006
    Post Count: 3

    Thank you are lot,I appreciate your help.

Viewing 5 posts - 1 through 5 (of 5 total)

You must be logged in to reply to this topic.