We bought a house as an IP which was in a run-down condition. It took us 4 months to re-paint, renovate bathrooms, replace kitchen etc. Then we leased it out with the agent. Is the 4 months interest on our loan tax deductible ? The whole loan is only for this property. Thanks.
Could you elaborate on this, please ? What is the Steele's case ? We planned to lease it out from the beginning and didn't stay in the house.
Tax Tip 38: Interest on Construction of an investment property Tax Tip 38: Interest on Construction of an investment property
Thanks. I see my tax agent next week but I prefer to have a clear idea of all taxes/refunds. I have another question. Is the land tax payable on the 4 months period in 2017-2018 when the property was vacant during renovation ? I read that from 1 July 2018 it is payable on vacant properties in ACT.
Maybe. In the ACT a property intended to rent may be able to claim the stamp duty on acquisition unlike other states where its a CGT cost. I dont understand the meaning of "from July 18 its payable on vacant...."
I quoted Land tax ``Beginning on 1 July 2018, ACT residential properties that are not your principal place of residence, or otherwise exempt, are liable for land tax. Your principal place of residence is your main home. Both vacant and rented properties are liable for land tax.'' I am aware that stamp duty is tax deductible in ACT. I assumed that before 1 July 2018 vacant properties were not liable for land tax.
