Tax position

[banjo]

Hi to all.

I am buying my first IP, a new duplex. I had intended to buy a spec property but am now buying the land (from the builder) and having him build the duplex units. It seems I will save some stamp duty doing it this way. Will I be disadvantaged tax wise purchasing this way rather than buying a completed project and being able to rent straight away?

Regards.... Banjo

 

[DaleGG]

Originally posted by banjo
Hi to all.

I am buying my first IP, a new duplex. I had intended to buy a spec property but am now buying the land (from the builder) and having him build the duplex units. It seems I will save some stamp duty doing it this way. Will I be disadvantaged tax wise purchasing this way rather than buying a completed project and being able to rent straight away?

Regards.... Banjo

HI Banjo

No, you should not be disadvantaged at all. You can still claim the interest as a tax deduction during the construction phase (courtesy of a court case or two over the last couple of years) even though you have no income from the property.

Once completed, you can claim depreciation on the finished duplexes although you will either need a statement from the builder, or, a Quantity Surveyor's report before you can identify the amounts in question.

Good luck and congratulations.

Dale