Hi everyone,
We are looking at building a granny flat at the rear of our house. We will however not be having granny to stay (just yet) and in the interim we will be renting it out.
As this is all new to us I have a few questions which I hope you can pass on some of your wisdom.
1) We will be taking out a loan to build the flat, will the interest on the loan be tax deductible?
2) Obviously the income off the flat will be taxable, however are there any capital gains implications when it comes time to sell the house?
Thanks,
Go Girl
We are looking at building a granny flat at the rear of our house. We will however not be having granny to stay (just yet) and in the interim we will be renting it out.
As this is all new to us I have a few questions which I hope you can pass on some of your wisdom.
1) We will be taking out a loan to build the flat, will the interest on the loan be tax deductible?
2) Obviously the income off the flat will be taxable, however are there any capital gains implications when it comes time to sell the house?
Thanks,
Go Girl