Timing for buying property with regard to tax return

[christos]

I purchased an IP recently and signed a contract on 5th June 2012 yet the settlement will fall on 27th July 2012. Property will be rented sometime in August once improvements made.


I am about to do a tax return for 2011-12 and at this point in time my understanding is I can claim some of the borrowing expenses (i.e loan fees & LMI)

http://www.ato.gov.au/individuals/content.aspx?doc=/content/00113245.htm

Is this correct or can I not claim any of this yet as have not settled and that will fall into the next financial year (along with all the other relavant tax claims - interest on rent, decpreciation etc) ?


Thanks

 

[vaughan]

Your borrowing fees have to be spread over a 10 year period or the length of the loan, whichever is less.

This document explains it all in full... the page has a link to a pdf so it's all in one place.

http://www.ato.gov.au/content/00313554.htm

 

[Melbournian]

you could submit your tax return first if you are eager and then claim an admendment later down the track. interest is you can deduct where else the rest like loan fees etc will be added to the capital base and used to calculate capital gain or loss when the asset is disposed.

 

[coastymike]

Borrowing costs are spread over 5 years or the life of the loan whichever is less, not 10 yrs

 

[Terry_w]

Borrowing fees can be claimed over 5 years or the length of the loan if shorter,
see s 25-25(5)(c) ITAA 97 http://www.austlii.edu.au/au/legis/cth/consol_act/itaa1997240/s25.25.html

 

[vaughan]

Borrowing costs are spread over 5 years or the life of the loan whichever is less, not 10 yrs

Ooops yeah my bad.

 

[Terry_w]

Oh you bad, very bad vaughan.

Sorry I didn't see Coasty's post as I must have been typing while he posted.

 

[christos]

Thanks all for the links - that helps