Another Tax Question

[Neptune]

Hi all,

I have recently bought an IP and will settle on it in mid June. If I don't manage to get a tenant say until early July then am I entitled to claim tax deductions for this tax year (interest payments etc) as the property won't be earning income in this financial year?
If not then can they be carried over to next financial year?

And one last question, if I get rent payment for a month in advance say on 20 June then is the income for this tax year worked out pro rate until 30 June or will it be the total received in this tax year regardless of how far in advance the rent is received?

Thanks

 

[D.T.]

Hi all,

I have recently bought an IP and will settle on it in mid June. If I don't manage to get a tenant say until early July then am I entitled to claim tax deductions for this tax year (interest payments etc) as the property won't be earning income in this financial year?
If not then can they be carried over to next financial year?

And one last question, if I get rent payment for a month in advance say on 20 June then is the income for this tax year worked out pro rate until 30 June or will it be the total received in this tax year regardless of how far in advance the rent is received?

Thanks

Its based on availability to rent that counts, not actual tenant in place.

 

[Paul@PFI]

If I were you I would ensure the agency agreement is made asap to remove all doubt.

 

[Neptune]

Thanks for the replies...am currently in discussions with a property manager

 

[Paul@PFI]

And get a depreciation schedule asap. Pay before 30 June and the cost deductible in this year.

I just got off phone from BMT who informed me that the a client IP was inspected around construction and they hold all common area info. They just need to complete for the final fitout and owner fixture retained.

Its worth calling them sometimes as often the big QS firms like BMT do the projects for the builder just prior to end of build to assist with sales agents and so finalistion of a report is easier and cheaper.

 

[Neptune]

Yeah got a schedule done at the start of the week...it is quite impressive the amount of deductions that they can find.