Renting out PPOR

Discussion in 'Accounting & Tax' started by projx, 21st Jan, 2017.

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  1. projx

    projx New Member

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    21st Jan, 2017
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    I know this is not the ideal strategy in terms of investment.
    We have no debts and some savings and are contemplating upgrading by building.
    We'd like to rent out PPOR. What are the tax implications and the best way to structure the loans?
     
    projx, 21st Jan, 2017
    #1
  2. Paul@PAS

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

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    We have no debts...Thus no loan ?
    I'm confused.
     
    Paul@PAS, 23rd Jan, 2017
    #2
  3. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Borrow to build the PPOR?

    If it is later rented out the interest on the loan used to build may be deductible.

    If you are building a new PPOR which you will live in then the interest won't be deductible so there are no direct tax consequences.
     
    Terry_w, 23rd Jan, 2017
    #3
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