Bank guarantee and tax implications

[Kai]

Hi,

If I'm purchasing a PPOR off the plan, does anyone know if the related bank guarantee fees are deductible? They are usually charged every 6 months.

It seems unfair that all the interest is taxable but due to the bank guarantee fees; I'm actually only receiving a proportion of the return.

Interest income less Bank guarantee fees less Tax = Nearly squat

Theres a tax ruling for property investments ATO ID 2003/113. Will that apply for private property purchases too?

Has anyone had experience with this scenario?

 

[Terry_w]

Sounds like it relates to the purchase and therefore would be deductible against any capital gains.

 

[luckyone]

Though you won't of course pay capital gains anyway unless you later on turn it into an investment.

 

[Terry_w]

Sorry, I misread the question.

If you are receiving interest then fees associated with the guarantee may be deductible. How much are these?

 

[boods99]

As this is going to be for a PPOR and not an income producing asset, you won't actually be able to claim anything
Boods

 

[Kai]

Thanks all..

I had a feeling that it wasn't deductible.

Cheers.