Urgent - Dale - Auction In The Balance!

[Donna L]

As I understand it, due to a tax ruling a few years ago, you can claim "holding costs" on a property where you buy land with the intention of building an income-producing property. Is there a time limit to building in this scenario? I have claimed holding costs in the past on OTP purchases where I have paid a 10% deposit with an equity loan and have claimed the interest.

In this case, we want to buy a block of land at auction and will building something on it just for the depreciation and rent for ten years or so until we are ready to retire down there.

How long would I have before I had to build to continue claimining the holding costs on the land?

Donna

Urgent reply most appreciated.

 

[DaleGG]

HI

The issues revolve around the decision in the Steeles court case. No time limit was actually set, but, the courts did suggest that the sooner the development the better . . .

I'm sorry that I cannot be more precise.

Originally posted by Donna L
As I understand it, due to a tax ruling a few years ago, you can claim "holding costs" on a property where you buy land with the intention of building an income-producing property. Is there a time limit to building in this scenario? I have claimed holding costs in the past on OTP purchases where I have paid a 10% deposit with an equity loan and have claimed the interest.

In this case, we want to buy a block of land at auction and will building something on it just for the depreciation and rent for ten years or so until we are ready to retire down there.

How long would I have before I had to build to continue claimining the holding costs on the land?

Donna

Urgent reply most appreciated.