Any Implications Settling IP Purchase prior to 1st July?

[WestOz]

Hi,
Submitted an offer on an IP this morning

Not sure if it makes any difference however requested settlement date for 8th July so everything starts next financial year rather than the bit left on this one.

Offer has just been accepted however vendor is requesting settlement on 26th June. (Agent advised vendors will be OS in July, would like it sorted prior to , could make assumptions)

Apparently until I accept the property is available to others being shown through on Monday, I won't get a chance to talk to accountant prior to then.

I'm wondering if anyone can advise any implications if it settles the week prior too or week after 1st July?

Thank you

 

[DaveM]

What state? When is land tax levied, eofy or eocy?

Settling it will give a small tax benefit this fy, but not much.

 

[WestOz]

Sorry, WA
should have mentioned that, be easier if OZ was uniformed with everything hey.

Small tax benefit is fine, was more concerned I was going to regret agreeing to settling a week before 1st July, that somehow it would cost me tax wise.

Thanks Dave

 

[GreyGhost]

Sorry, WA
should have mentioned that, be easier if OZ was uniformed with everything hey.

Small tax benefit is fine, was more concerned I was going to regret agreeing to settling a week before 1st July, that somehow it would cost me tax wise.

Thanks Dave

Contract price is relevant here, not settlement date.

Also - if you settle prior to 30 June and it is not currently rented but "available to rent" and maybe listed with a rental agent then you can claim the interest deduction in 2015 year even if it did not generate any income.

 

[WestOz]

Ah ok,
399k (+fees), 2 x rented units at 220pw each via agent

As long as nothings gunna jump out and grab me unexpectedly, as it (they) has in the past, so cautious.

Thanks for that

 

[Terry_w]

Land tax is the biggest potential issue.

Extra cost for a tax return too perhaps.

 

[Scott No Mates]

If your loan is IO then consider prepaying the year's interest if you have to settle this FY.