I made some enquiries with an accountant re: deductions for expenses during construction and I got a confusing message:
We settled on the land June 2013, began construction in oct 2013. They were available for rent April 2014 and tenanted June 2014.
I was of the belief that: the interest on the land portion and rates were deductible so long as we began construction within a reasonable timeframe? Second to that we can not claim any interest on the build payments until the dwellings are available to rent, so I also thought any interest incurred after april 2014 for the construction portion was deductible?
I was given a message by the accountant that it may be a concern to the ATO, that as they were only tenanted for 5 weeks I can only show $3500 income and deductions of about $12k (interest+ depreciation) showing a large loss.
It was also suggested by the accountant that the loss would be carried forward to the following FY for when this IP makes a profit?? Can't this loss offset profit from another IP or my other income?
We settled on the land June 2013, began construction in oct 2013. They were available for rent April 2014 and tenanted June 2014.
I was of the belief that: the interest on the land portion and rates were deductible so long as we began construction within a reasonable timeframe? Second to that we can not claim any interest on the build payments until the dwellings are available to rent, so I also thought any interest incurred after april 2014 for the construction portion was deductible?
I was given a message by the accountant that it may be a concern to the ATO, that as they were only tenanted for 5 weeks I can only show $3500 income and deductions of about $12k (interest+ depreciation) showing a large loss.
It was also suggested by the accountant that the loss would be carried forward to the following FY for when this IP makes a profit?? Can't this loss offset profit from another IP or my other income?