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If you're building a new house to rent out are the interest paid on a loan taken out for all the finishing touches such as fence, landscaping, tv antena, curtains, mailbox, aircon, etc fully deductable?
If you're building a new house to rent out are the interest paid on a loan taken out for all the finishing touches such as fence, landscaping, tv antena, curtains, mailbox, aircon, etc fully deductable?
Hi Paul. Are you saying that the 6 months interest paid during construction is non tax deductable?
Hi Paul,
I noticed a different response here to that which you gave in my thread here: http://somersoft.com/forums/showthread.php?t=109161
"Hi Paul. Are you saying that the 6 months interest paid during construction is non tax deductable? - No. The interest is possibly deductible"
Is this because of the difference between an existing home being repaired and new home being built? A different scenario even though both homes are not rented while the loan is incurring interest?
12. It follows from Steele that interest incurred in a period prior to the derivation of relevant assessable income will be 'incurred in gaining or producing the assessable income' in the following circumstances:
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The interest is not incurred 'too soon', is not preliminary to the income earning activities and is not a prelude to those activities;
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the interest is not private or domestic;
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the period of interest outgoings prior to the derivation of relevant assessable income is not so long, taking into account the kind of income earning activities involved, that the necessary connection between outgoings and assessable income is lost;
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the interest is incurred with one end in view, the gaining or producing of assessable income; and
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continuing efforts are undertaken in pursuit of that end.F1
ATC 4242; (1999) 41 ATR 139. Steele's case concerns, amongst other things, the deductibility of interest on money borrowed to purchase land intended to be developed. The case involves claims for interest incurred in periods during which no relevant assessable income was derived.
Seems in line with the statement saying you can claim interest for the land..could be read that it only applies to new builds on purchases land?
ATC 4242; (1999) 41 ATR 139. Steele's case concerns, amongst other things, the deductibility of interest on money borrowed to purchase land intended to be developed. The case involves claims for interest incurred in periods during which no relevant assessable income was derived.
Seems in line with the statement saying you can claim interest for the land..could be read that it only applies to new builds on purchases land?