can claim interest expenses for IP during building stage - no rentals

im asking on behalf of a friend. He would like to know if he can claim interest deduction for a IP that was not completed yet during the financial year? (ie, no rental income yet).

HIs accountant tells him can't claim, can only carry forward to next year?
 
im asking on behalf of a friend. He would like to know if he can claim interest deduction for a IP that was not completed yet during the financial year? (ie, no rental income yet).

HIs accountant tells him can't claim, can only carry forward to next year?

I would say yes you can as thats what I have done in the past.
During the building process if I start in say Feb and it is not finished and rented out until say Sept then I have and do claim the interest that I have paid up until the end of June.

I would suggest ringing another accountant and asking them the question.
Maybe one of our SS accountants can verify it.

Regards

Regrow
 
He can claim the interest whilst building provided the house is intended to be rented out when finished and not be his PPOR or holiday home.
 
Your friend should ask his accountant to look at Steele's Case and then for him to tell your friend why your friend is not able to claim in the year the expense occurred
 
He can definitely claim the interest as well as rates, water etc. Your friend should get a new accountant!
 
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