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H&L Package - Deposit

Discussion in 'Accounting & Tax' started by Luca, 9th Oct, 2016.

  1. Luca

    Luca Well-Known Member

    Joined:
    28th Jan, 2016
    Posts:
    181
    Location:
    Melbourne
    Hey guys,

    I have paid the deposit for a small lot in March.
    I am still looking for the builder and the construction will start probably mid next year.

    Is the deposit for the land deductible? Do I have to declare something on my tax return?
    I would like to get an accountant on board but considering there is a bit of fee involved, I would prefer to wait next year if possible. Do you reckon better if I do that this year?

    My financial situation is not complicate and I usually get my tax return done for $75.

    Cheers,
    Luca
     
  2. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

    Joined:
    18th Jun, 2015
    Posts:
    2,606
    Location:
    Canberra, Brisbane and Sunshine Coast
  3. Terry_w

    Terry_w Tax and Structuring Lawyer Business Member

    Joined:
    18th Jun, 2015
    Posts:
    11,693
    Location:
    Southern Highlands NSW
    Deposits are not dedictible but interest on borrowed money maybe Deductible.

    Time to get some proper tax advice maybe.
     
  4. Luca

    Luca Well-Known Member

    Joined:
    28th Jan, 2016
    Posts:
    181
    Location:
    Melbourne
    Thanks guys,