Apportioning for new IP's

[heres_barry]

Hi,
Thanks for this forum, I've been lurking for what seems an obscene amount of time and this is the first time I've had to post. I've just settled on my 1st IP and am trying to get through the maze that is the income tax variation form.

Can someone please tell me their understanding of apportioning deductible expenses. If I purchase a new property in say Nov and it is available for rent from day 1, in other words it has been available for rent 100% of the time I've owned it - do I need to apportion the deductible expenses, OR is it, if I purchase it in Nov I have to apportion deductible expenses by 33/52 (the number of weeks it is actually rented in the FY).

thanks in advance, Barry

 

[DaleGG]

Originally posted by heres_barry
I've just settled on my 1st IP and am trying to get through the maze that is the income tax variation form.

Can someone please tell me their understanding of apportioning deductible expenses. If I purchase a new property in say Nov and it is available for rent from day 1, in other words it has been available for rent 100% of the time I've owned it - do I need to apportion the deductible expenses, OR is it, if I purchase it in Nov I have to apportion deductible expenses by 33/52 (the number of weeks it is actually rented in the FY).

thanks in advance, Barry

Hi Barry

Both are realistic answers. In your circumstances though, it will be based on the time that the IP is available for rent. So, yes, you would claim the interest, rates and other expenses that you actually pay during the year, and, only the proportion of the depreciation and other building allowances based on the 33/52 formula.

I hope that this helps

Dale