Can I claim stamp duty and other costs for previous owner occupied property?

[evoposer]

Hi,
I'm having quite the dillema.

Early 2008 we bought vacant land, obviously paid stamp duty and then built our property which was completed two months ago. We intended to live in this house long term. Our plans have changed though and we are looking at renting closer to town.

If I rented it out now will I be able to claim back the stamp duty cost, interest paid on our home loan and costs of finishings (carpets, blinds, painting etc)? Or is it too late?

Any suggestions/comments would be greatly appreciated.

 

[Rob G.]

Stamp duty is a capital cost.

Interest is deductible only from the time you treat it as an IP.

The house and fixtures are depreciable from the time it becomes an IP.

Don't forget oven, hot water system, air conditioner is depreciable at a faster rate than building & fixtures.

Go see an Accountant.

Cheers,

Rob

 

[helenmagic]

Hello,

What about the Borrowing expenses such as

• Final Search Fee
• City Agent Fee
• Sundries
• Loan establishment cost

Cheers,
Helen

 

[Rob G.]

Hello,

What about the Borrowing expenses such as

• Final Search Fee
• City Agent Fee
• Sundries
• Loan establishment cost

Cheers,
Helen

Deductible over the shorter of 5 years or the life of the loan, so you can pick the tail end of those deductions up.

Make sure title search fees for your acquisition of property don't find their way in.

Cheers,

Rob

 

[helenmagic]

Thanks Rob,

So can I simple get the amount and divide it by 5 or do I need to depreciate it (diminishing/prime cost)?

And then only use the years in which it was an investment? Would I need to pro-rata the amounts or can I simple claim it if it falls within the financial year i'm claiming for?

Ahh I see so I should remove the "Final Search Fee". Doesn't leave much left

Thanks,
Helen

 

[FletcherTax]

Borrowing Costs - Yes divide by 5. Pro rata will most likely be required in the first and last years of claim (starts from contract date). So may effectively run into 6 financial years.

Yes to be deductible only in the years it was an investment property.

 

[helenmagic]

Thanks FletcherTax