From: Patrick Bruadair
I bought an old house on a block of land and have had plans prepared for a three unit development. Once completed, I will be retaining all three units for rental i.e. income producing purposes. I haven't rented out the old house while plans for the development were being prepared (it's basically unrentable in its present condition). Because the purchase was for development and subsequent income production, my understanding is that the interest I've paid (and continue to pay) since purchase is deductible (even though I have never rented out the the old house). Is this correct?
rgds
pat
I bought an old house on a block of land and have had plans prepared for a three unit development. Once completed, I will be retaining all three units for rental i.e. income producing purposes. I haven't rented out the old house while plans for the development were being prepared (it's basically unrentable in its present condition). Because the purchase was for development and subsequent income production, my understanding is that the interest I've paid (and continue to pay) since purchase is deductible (even though I have never rented out the the old house). Is this correct?
rgds
pat
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