Tax refund questions

[Joker]

Hi,
I have just come back from accountant after doing my tax refund for F07.
I bought my first IP H&L package early 2006 in SE QLD. I believe I was entitled to claim interest during the construction of the house and costs to fly up there (Im from Sydney) to inspect the building. My accountant tells me because the house was not yet been rented I cannot claim at this point until after I sell the property. I thought that was strange. Is that the case?
Thanks in advance.
Joker

 

[poppy]

Hi Joker,

Regarding the interest your accountant is definitely wrong. Do some searching on the ATO web site (try searching on Steele), also I believe in the ATO's rental property booklet it states that you can claim this.

Travel costs are more of a grey area I believe. I put a post on a while back about this:

http://www.somersoft.com/forums/showthread.php?t=29488

 

[Jace]

Joker,

Ceck out TR2004/4 on the ATO site...should answer your question.

 

[Mry]

I find the most embarrassing things to take back to an accountant is stuff from the ATO's website in plain english.

Such as this page -
http://www.ato.gov.au/individuals/content.asp?doc=/content/00096828.htm&page=8&H8

Similarly, if you take out a loan to purchase land on which to build a rental property or to finance renovations to a property you intend to rent out, the interest on the loan will be deductible from the time you took the loan out.

 

[Joker]

Thanks for all your replies. Looks like a need to find myself a new accountant.

 

[Pushka]

Gotta love Mry's posts!

 

[nesta]

Hi

Ya, I agree. So long your initial intention is for investment purpose when purchasing this property, I don't see why your accountant can't pick this up.

Ask him to revise your tax return and ask for fees discount haha

Have a nice day.

Nesta

 

[Belu]

Just a little definition, capital costs include all costs "associated with bringing the asset into a position and condition ready for use"

So my understanding is that travel is a capital cost.

the reason interest isnt is because the loan is the capital part, the interest is a service fee and therefore an expense.