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From: Mike .


INVESTMENT PLANNING
From: Terry
Date: 3/12/00
Time: 3:10:29 PM

Need advice please, the house we live in we intend to rent out and purchase a new house to live in. Can I claim the tax advantages etc on the new mortgage/expenses because we will be renting out our previous home for income? All advice welcome.

Thanks in Advance, Terry

 

[WebBoard]

Les

Reply: 1
From: Mike .


Re: INVESTMENT PLANNING
From: Les
Date: 3/12/00
Time: 8:18:01 PM

G'day Terry,

Take a look at a previous article "Claim Previous Home Interest" dated 12 Nov 99.

In a word, you CANNOT claim the cost/mortgage of building/buying a new home for yourself. But you CAN claim for mortgages that were taken out on homes used for rental. i.e. It must be income-producing.

Other countries might allow claims against your own home (see USA - Kiyosaki mentions this one several times in his books) - but not Australia.

Read that Nov 99 article - it pretty much covers your situation.

Regards, Les

 

[WebBoard]

TERRY

Reply: 1.1
From: Mike .


ATTN LES
From: TERRY
Date: 3/13/00
Time: 2:05:26 PM

Read both articles, much clearer now. Many Thanks Terry

 

[WebBoard]

Gee Cee

Reply: 1.1.1
From: Mike .


Re: INVESTMENT PLANNING
From: Gee Cee
Date: 3/14/00
Time: 7:10:01 PM

Les & Sue 1 covered this in December and it is a very common question.

Basically just quickly:

Tax deductibility is for the reason; eg you are buying a investment that you rent out & hopefully make some money from .......eventually?

Your new home is a personal item, just for you. (Sort of like if you bought a Porche you cannot claim the interest maintenance etc as a tax deduction)

However if you still owe a substantial amount on your old home and you rent it out, you can claim interest, maintenance, depreciation, rates etc on that old home as it would then be a investment from day 1 of renting.

Your new home though must be packaged in it's own separate bucket and no deductions can be claimed .

Check this out with a good property accountant & the tax office but I think it is correct however brief I have made it.

Regards, Gee Cee