Tax Implications on buying a IP

[Butters]

Background:
Placed a deposit on a new IP in February this year. The house is yet to be completed and won't have any tenants in it until early next year.

Question:
Will there be any tax implications in owning this new IP for the 2007-8 financial year?

 

[Raja]

Background:
Placed a deposit on a new IP in February this year. The house is yet to be completed and won't have any tenants in it until early next year.

Question:
Will there be any tax implications in owning this new IP for the 2007-8 financial year?

Hi Butters

If you took out a loan for the house and your purpose was to rent it out when completed then you can claim any interest you have paid on it already.

 

[Butters]

Thanks Raja for your response. I'm new at this game - still learning the ropes.

 

[buzzlightyear]

Background:
Placed a deposit on a new IP in February this year. The house is yet to be completed and won't have any tenants in it until early next year.

Question:
Will there be any tax implications in owning this new IP for the 2007-8 financial year?

Butters, are you referring to a newly built IP that will have construction completed by early next year?

 

[Butters]

Butters, are you referring to a newly built IP that will have construction completed by early next year?

That's correct buzz