Loan interest on land tax deduction?

[Warrali]

I'm thinking of purchasing a piece of land with the intention of building on it within 6-12 months. The interest on my land loan, is that a tax deduction if the building will be rented out once construction is completed?

 

[Rolf Latham]

I'm thinking of purchasing a piece of land with the intention of building on it within 6-12 months. The interest on my land loan, is that a tax deduction if the building will be rented out once construction is completed?

I believe it would be based on Steele V ato

But im not an accountant but Terry W is and he will be around soon to offer his proff advice


ta

rolf

 

[Terry_w]

I believe it would be based on Steele V ato

But im not an accountant but Terry W is and he will be around soon to offer his proff advice


ta

rolf

I'm not an accountant either, but that is the correct case. From memory it took Mrs Steele around 8 years to build too!

 

[Aaron_C]

Obviously the longer it takes between acquisition of the vacant land and the construction itself the weaker the case that you were ever going to build on it.

 

[nathank]

Have just been through an audit and this was raised. I had to demonstrate that the land purchase was for investment.

just be aware some expense go to your cost base (plan's / architects fees / etc) that will be deducted from the sell price, not during holding.

i had also put in my back pocket a rental appraisal for the building and also had a set of plans drawn up too where on the plans it said "rental property at xyz for NathanK".

you just need to demonstrate you had the intention to rent it for investment, not for yourself.