Selling IP - costs deductable???

[ntowill]

Hi,

I have an IP which was PPOR for the first 6 months, then IP since then (about 4 years). I am trying to sell it at the moment and it is not tenanted now. A couple of questions:

1. As it is not tenanted/availble to rent, is the loan interest, etc. that I am paying still deductable, or do I have to have it advertised for rent so I can say that it's AVAILABLE to create an income (eg. rent for a high price, and just not accept anyone)?

2. Are the selling costs deductable (eg. agent fees, solicitor, advertising, etc.)?

Thanks heaps.

 

[DaleGG]

Hi

The selling costs will reduce your CGT only. They are not tax deductible against your rental or other income.

The interest should be tax deductible based on the Steele' Case.

Dale

 

[Les]

G'day ntowill,

A bit of clarification re the following please:-

I have an IP which was PPOR for the first 6 months, then IP since then (about 4 years). I am trying to sell it at the moment and it is not tenanted now. A couple of questions:

You mention this was your PPOR - did it REMAIN your PPOR, or did you purchase another? If you rented, lived overseas, or stayed with Mum, this could still be your PPOR - thus no Capital Gains Tax payable .....

(Clarification for others - as I understand it, a PPOR CAN be rented for up to 6 years while still retaining PPOR status, so long as you don't claim another home as PPOR in that time). That is how I understand it, but I am not a qualified adviser, so this is opinion only .....

Regards,