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Claiming PPOR/Investment Costs on Tax

Discussion in 'Accounting & Tax' started by dmb1978, 14th Mar, 2016.

  1. dmb1978

    dmb1978 Well-Known Member

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    Hi all, obviously we need to seek professional advice but I was just wondering if anyone knew off their head. We are due to be deployed overseas for about three years and need to sell the PPOR as I don't want to rent it. By selling it we will be required to pay down splits on IP's and incur several discharge and break fees to do this.

    We will also have the fees associated with selling the house etc. Now I know it's our decision to sell and perhaps my question applies to renting costs as well. Our organisation is paying for most of the move but I was wondering if it was possible to claim any of these expenses on tax.

    Thanks
     
  2. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Selling sounds like a private expense to me.

    And you don't necessarily have to pay down those splits used on the IPs - you can change the security.
     
  3. dmb1978

    dmb1978 Well-Known Member

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    Thanks Terryw, will have to look into the other security options.
     
  4. Rob G

    Rob G Well-Known Member

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    Mortgage discharge fees are deductible to the extent (proportion) that the loan is used for income purposes.

    Selling costs are a capital expense - cost base 2nd element
     
  5. dmb1978

    dmb1978 Well-Known Member

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    Thanks Rob G
     
  6. Luca

    Luca Well-Known Member

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    Are you sure selling is the right choice? I will better assess what will cost keeping it and managing from overseas.
     
  7. Paul@PFI

    Paul@PFI Tax Accounting + SMSF Business Member

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    Selling it = Likely 100% CGT exempt and zero costs are deductible as its private.

    Keeping it may allow you access to maintain the main residence CGT exemption while you are overseas. I would do maths on holding costs etc and identify the possible tax outcome. It may be cheaper to hold it and still have no CGT impacts. Any loss that accrued while offshore may benefit on your return.

    Depending on tax residency issues there could be loss of the 50% general CGT discount BUT if the property is exempt under the 6 year absence rule then that won't apply. I get asked about that issue a bit.
     
    Last edited: 14th Mar, 2016