Purchasing now v.s. next financial year

Discussion in 'Accounting & Tax' started by fizz_pop, 2nd May, 2019.

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  1. fizz_pop

    fizz_pop New Member

    Joined:
    2nd May, 2019
    Posts:
    1
    Location:
    NSW
    Hi guys,
    My wife and I are looking at purchasing a property that consists of a house and a granny flat. They are both currently tenanted on fixed term leases until the 1st of July.

    We are looking at moving into the main residence after this date as our first house and it being stamp duty exempt.

    We were just wondering if there are any advantages or disadvantages of purcasing the property before June 30 as opposed to next financial year.
    We were thinking that possibly it would allow us to claim some of the building deductions for this financial year as it would be acting as an investment property this financial year but not sure how this works or if it stuffs up our stamp duty exemption for FHB in nsw
     
  2. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

    Joined:
    18th Jun, 2015
    Posts:
    23,536
    Location:
    Sydney
    If it is presently tenanted when you acquire then it triggers a pro-rata CGT issues forever more. If its vacant and you move in promptly it doesnt.

    The pro-rata expenses and income issue arent a major issue - Certainly not a major tax benefit if you were thinking it may
     
    Ross Forrester likes this.