Deduction on property while it is up for sale?

[Pa1nter]

I have just come from a barbecue where someone has told me his accountant said he can claim deductions on his IP while it is up for sale.It hasn't been rented for over 12 months.
What are the rules for this scenario.
Seems a bit suss to me?

 

[HD_ACE]

Is it still abailable for lease? Ie has he been advertising for tenants etc for the 12 months?
If not then i would suspect hes doing the wrong.

Cheers

 

[Pa1nter]

Is it still abailable for lease? Ie has he been advertising for tenants etc for the 12 months?
If not then i would suspect hes doing the wrong.

Cheers

No at the start he did have it advertised for rent and couldn't rent it for the money he was asking.That was over 12 months ago.
Has only been listed as for sale,he says that everything can be claimed when he sells it ??

 

[HD_ACE]

No at the start he did have it advertised for rent and couldn't rent it for the money he was asking.That was over 12 months ago.
Has only been listed as for sale,he says that everything can be claimed when he sells it ??

Available for rent or recieving rent would be the criteria.
I suspect he would have to prove to the ato it was advertised for rent and did what he could to rent it.

But in saying that you can claim on land if your making steps to build an ip.

Maybe an expert can confirm.

Cheers

 

[bbmick]

If he's not able to claim (or just didn't) as a standard "expense" tax deduction, I would have thought that he could still claim it as part of the "cost base" when calculating Capital Gains Tax after selling?

But I'm no expert though...........

 

[handyandy]

I am with bbmick.

The holding costs will be taken into account when the property is sold.

Cheers

 

[willair]

I have just come from a barbecue where someone has told me his accountant said he can claim deductions on his IP while it is up for sale.It hasn't been rented for over 12 months.
What are the rules for this scenario.
Seems a bit suss to me?

Just a quick question,some landlord insurance would not cover you for that period-and rental loss does not last long,but I know someone who could not rent a flood property in rocklea for 14 months,the rent was too high just sat there and she thought that it ok,but the ATO saw it different
but every case would be different..imho..