Hi there
Buying a vacant 1 acre country block as a possible retirement home site. But odds are we will sell block in 4-5 years and hopefully make a slight capital gain after retiring somewhere else. But buying it at a good price.
If I understand this correctly I should borrow the money for this block rather than use my own, so that on the sale I can then deduct the loan borrowing costs and 5 years interest. Is this correct?
Secondly can I deduct 5 years rates, and stamp duty and legal fees on purchase, legal fees on sale and agents commission when calculating CGT?
Thirdly if I travel 250 kms return 12 times a year to transport a ride on lawn mower to maintain this block * 5 years can I claim this?
Fourthly if I apply for a planning permits for house construction, septic system, and driveway and culvert at a cost of 1000 are these deductable? Having planning approval will increase sales value and chances of making a sale.
Fifthly if I pay 3500 for power connection and 10000 for driveway and culvert to VicRoads requirements are these costs deductable?
Finally if all or most of the above is deductable then we are likely to make a loss and have no CGT liability. Can this loss be deducted from a Capital Gain on another investment property?
Any advice would be greatly appreciated
Have a good day
Kevin
Buying a vacant 1 acre country block as a possible retirement home site. But odds are we will sell block in 4-5 years and hopefully make a slight capital gain after retiring somewhere else. But buying it at a good price.
If I understand this correctly I should borrow the money for this block rather than use my own, so that on the sale I can then deduct the loan borrowing costs and 5 years interest. Is this correct?
Secondly can I deduct 5 years rates, and stamp duty and legal fees on purchase, legal fees on sale and agents commission when calculating CGT?
Thirdly if I travel 250 kms return 12 times a year to transport a ride on lawn mower to maintain this block * 5 years can I claim this?
Fourthly if I apply for a planning permits for house construction, septic system, and driveway and culvert at a cost of 1000 are these deductable? Having planning approval will increase sales value and chances of making a sale.
Fifthly if I pay 3500 for power connection and 10000 for driveway and culvert to VicRoads requirements are these costs deductable?
Finally if all or most of the above is deductable then we are likely to make a loss and have no CGT liability. Can this loss be deducted from a Capital Gain on another investment property?
Any advice would be greatly appreciated
Have a good day
Kevin