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
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
Deposits are not dedictible but interest on borrowed money maybe Deductible. Time to get some proper tax advice maybe.
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)
