I am struggling to find information on this online, and the ATO aren't being particularly helpful. I'm sure someone else has come up against this so figured I would ask.
I have purchased a unit off the plan in Canberra. Purchased in 2008, stamp duty paid in June 2009. However, the unit is still not complete, and won't be earning me any rental income until sometime in the 2009/2010 financial year. Given that I paid stamp duty in the 2008/2009 financial year, I am trying to find out (with some kind of reference if possible) whether I can claim the stamp duty as a tax deduction in my 08/09 tax return?
The thing that tells me I can, is NAT1729 from the ATO (Rental Properties guide) which under the heading "Claims for which you can claim an immediate deduction" states
However, normally, you can't claim deductions for investments unless you are earning an income to offset against.
Surely people are up against this all the time in the ACT, but I am struggling to find any references online to this issue...
I have purchased a unit off the plan in Canberra. Purchased in 2008, stamp duty paid in June 2009. However, the unit is still not complete, and won't be earning me any rental income until sometime in the 2009/2010 financial year. Given that I paid stamp duty in the 2008/2009 financial year, I am trying to find out (with some kind of reference if possible) whether I can claim the stamp duty as a tax deduction in my 08/09 tax return?
The thing that tells me I can, is NAT1729 from the ATO (Rental Properties guide) which under the heading "Claims for which you can claim an immediate deduction" states
. Given that I will use the property to produce income, it seems fair.Your share of the costs of preparing and registering a lease and the cost of stamp duty on a lease are deductible to
the extent that you have used, or will use, the property to
produce income.
However, normally, you can't claim deductions for investments unless you are earning an income to offset against.
Surely people are up against this all the time in the ACT, but I am struggling to find any references online to this issue...