Pro rata expenses for tax or claim 100%

[warek]

Hi there

If you paid land tax or landLord or building insurance can you calim 100% in year of payment or do you need to pro rata

Thanks for any response

Have a good day

Kevin

 

[Paul@PFI]

Kev

I assume you paid for a period that didn't span the tax period. eg In May you paid a full years insurance and its for the period May 2014 - May 2015.

In this case you deduct 100% when it is paid provided the prepaid period is under a year. Land tax is a funny one...Its for "Midnight 31 December" so the use of the property on that precise date is the issue. Its possible that it can be taxable yet the tax isn't deductible.

If you sell or acquire a property or change its use (ie PPOR / IP) then pro-rata calcs are required.

 

[warek]

Thanks Paul

appreciate the reply

Kevin
QUOTE=Paul@PFI;1200062]Kev

I assume you paid for a period that didn't span the tax period. eg In May you paid a full years insurance and its for the period May 2014 - May 2015.

In this case you deduct 100% when it is paid provided the prepaid period is under a year. Land tax is a funny one...Its for "Midnight 31 December" so the use of the property on that precise date is the issue. Its possible that it can be taxable yet the tax isn't deductible.

If you sell or acquire a property or change its use (ie PPOR / IP) then pro-rata calcs are required.[/QUOTE]