Is interest deductible during construction of a new property intended for rent?

[rotsevni]

Hi All,

I am currently building a property and it is almost due for completion. My plans are to rent out this property once construction is complete.

My question is whether the interest on the loan will be deductible during construction of this property which will be rented out once complete?

Thanks.

 

[Rolf Latham]

Hi All,

I am currently building a property and it is almost due for completion. My plans are to rent out this property once construction is complete.

My question is whether the interest on the loan will be deductible during construction of this property which will be rented out once complete?

Thanks.

Im not an accountant, but this comes across our table once a fortnight.

yes...........steele v ATO

not just during the build, but land hold as well, though there are conditions


ta

rolf

 

[dexx]

A related question - is travel to/from the property during construction for inspections deductible?

 

[dan c]

A related question - is travel to/from the property during construction for inspections deductible?

No, because it's not available for rent at this time. Interest, per Steele's case, is treated differently.

 

[rotsevni]

Thanks for the feedback guys, greatly appreciated!

 

[JWR]

If you are an owner-builder wouldn't travel/accommodation form part of the cost base for construction?

 

[dan c]

If you are an owner-builder wouldn't travel/accommodation form part of the cost base for construction?

Yes, it would form part of the cost base, but it wouldn't be a deductible rental expense.