First time tax return with IP

Hi All.

Quick question for those who may be able to assist...

I usually do my own tax returns via etax but have just turned a former PPOR into an IP in mid may, however I did not actually receive any income from the property until July 1. I paid for and received a depreciation report in Early May and have accumulated approx $1000 in expenses turning this property into a rental but would like to know if I am best not to declare anything on this tax return (as I have no 2013 income from this property). Secondly, can I still claim deductions for expenses i.e depreciation report even if I have not received income for this property?

thanks.
 
Yep some expenses are depreciated some are claimed off in one hit as well...
also sounds like you didnt have the IP for a whole financial year, so may be pro-rated as well.
 
At the time when you acquired the IP (signed the contract) if you were purchasing with an intention to rent it then its likely that the property has been available for rent from day 1.

Steele's case may allow a deduction for interest, rates and water for the period before first occupation and rent. Its common to find these on the settlement sheet.

The Depn schedule cost relates to managing tax affairs and may be deductible at item D10. However the costs in that schedule may be deductible after July. Ditto borrowing costs and other outgoings etc.
 
Hi All.

Quick question for those who may be able to assist...

I usually do my own tax returns via etax but have just turned a former PPOR into an IP in mid may, however I did not actually receive any income from the property until July 1. I paid for and received a depreciation report in Early May and have accumulated approx $1000 in expenses turning this property into a rental but would like to know if I am best not to declare anything on this tax return (as I have no 2013 income from this property). Secondly, can I still claim deductions for expenses i.e depreciation report even if I have not received income for this property?

thanks.

If I were in your position and I had the property genuinely available for rent from May then I would claim the interest on the loan (pro-rata) from this date plus the depreciation schedule plus I would look through the expenses incurred to see what could be claimed as technically not all expenses turning this property into a rental would be claimable according to the ATO.
 
Back
Top