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Tax deductions on home land and home separately settled in 1 loan

Discussion in 'Accounting & Tax' started by robi, 28th Jun, 2016.

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  1. robi

    robi Active Member

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    Please can any one suggest me
    I have purchase land and home package in 2014, for investment the land settlement happen in dec 2015 and the house construction is about to completed in July 2016

    I would like to know if I can claim interest on land and build construction which has been incurred and charges of settlement or do I need to wait till completion of construction and get it tenanted , so will I be able to back date the charges in 2016 returns ? What shall I do? Please advice
     
  2. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    what was your intention on buying this land?
     
  3. robi

    robi Active Member

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    To build house and rent it
     
  4. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Then you may be in luck if you make continuing efforts toward this goal.

    You may be able to claim the interest in the year in which it was incurred.

    But seek specific tax advice on your situation.
     
  5. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    Im not a tax guy, but its a common question with our clients, where we suggest that they have a look at the decision of Steele V ATO and seek specific tax advice

    Terry who posted above can likely help

    ta
    rolf
     
  6. Paul@PFI

    Paul@PFI Tax Accounting + SMSF Business Member

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    Settlement costs arent deductible.