HI just wondering I have an IP that was bought last year and early this year I changed it's purpose to investment, paid the extra stamp duty and it has been vacant ever since while I renovate. Can I claim all the deductions I am incurring even there is no income to offset? (not jus tinterest but reno costs... I understand there's an owner builder or capital construction threshold? I'm trying to be under that. My purpose is to rent out in a few months. Do I need to say it has been avaialable for rent this whole time but noone has been interested? I mean they are happy to take my stamp duty to make it an IP, and the renos are just taking a while as I'm doing myself.

I have 2 IP and yes I claim renovations and lots more talk to your accountant they will know what to claim ie one of mine is in a different state to which I live and I can claim airfares hire car etc to inspect it keep all paperwork that you spend on it

I have 5 IPs and I claim even down to the welcome mat!
Any renos done on an IP are claimable, but my advice is to get a professional Depreciation Report from a trust evaluator and tax agent.

this is not the place i would take investment or tax advice from !!

kk said..

My dad reckons that accountants are just ATO workers on contract

Pretty much...I mean, you need to comply with ATO laws and that is what they will help you do. If you want to avoid paying tax then don't go to an Accountant.....and be prepared for the potential fun that avoidance may (and should) bring you.

The key is that a good tax accountant will make sure that you are set up to comply as efficiently at possible. ie pay the absolute minimum required by law.

kk said..
I like how accountants are being referred to as tax agents .

My dad reckons that accountants are just ATO workers on contract

I reckon he might be right

Have to agree,

I came into a sum of money a few years ago, not a huge amount but enough to say buy a new car. My accountant advised me to pay off my HECS debt. I chose to use the money as deposit for an investment property. This property has gone up around $200K in value since that time and generates around a $300 a month income after expenses.

kk said..
I like how accountants are being referred to as tax agents .
My dad reckons that accountants are just ATO workers on contract
I reckon he might be right

Tax agents are paid to resolve your taxation issues. They are meant to give you the best deal but within the tax laws of the day. It is also in their interest not to wander off too far from legitimate claims. Don't expect them to provide financial advice as that is not their role, and I bet they will refuse to oblige if asked. I tried that once.

However, you can ask them about what are the legitimate claimable items, and that is about it. My tax agent used to work for the ATO. That is an advantage because he understands the gears and levels within the ATO.