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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:
    124
    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:
    2,140
    Location:
    Canberra and Sydney
    If the deposit came from cash then it wouldn't.

    If it was from borrowed funds - and the property was going to be an IP than it should be deductible.

    Cheers

    Jamie
     
  3. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

    Joined:
    18th Jun, 2015
    Posts:
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    Location:
    Sydney
    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:
    124
    Location:
    Melbourne
    Thanks guys,
     
  5. Paul@PFI

    Paul@PFI Tax Accounting + SMSF Business Member

    Joined:
    18th Jun, 2015
    Posts:
    2,358
    Location:
    Sydney
    The OP question is a bit like flying in a A380 and the pilot asks if anyone knows how to land. I wonder if its +ve or -ve geared ?

    Ask the $75 tax adviser. :)
    Or read the ATO Rental Guide 2016 (Google it)