Q 2: I own some vacant land. Can I claim tax deduction for the interest and other expenses of the vacant land?

-

Answer:
Interest, council rates, land tax and all other holding expenses of a vacant land can be claimed only when the following conditions are satisfied:
·         You bought the vacant land with the intention of building a dwelling to rent. You must take active and genuine steps to build the dwelling within normal time frames and make it available for rent as soon as it's completed. Normal time frame is defined by the time taken in similar cases.
·         If there are any delays beyond your control, then you can still claim tax deduction.
·         If you decide to sell your vacant land or your intention to build a residential dwelling to rent changes, you must cease claiming deductions immediately. But still these costs can be included in the cost base of the land for calculating the capital gain on the sale of the land.
Changes from 01/07/2019:
The holding cost of vacant land will be claimable as deduction in the following two cases, otherwise it will be added to cost base of the land.
  • after a property has been constructed on the land, has received approval to be occupied and is available for rent, or
  • the land is being used to carry on a business, including a business of primary production.
The “carrying on a business” exception, as noted above, will generally exclude land held for commercial development by those in the business of property development.

Comments

  1. Caitlin Braund23 January 2019 at 21:37

    On the land of the vacant there are some details of the logically links we have to make from the requesting of the tax office. This letter will pass from the intention of the calculating upon the online assignment writing services which will more deduction have to be possible.

    ReplyDelete

Post a Comment

Popular posts from this blog

HOW DOES THIS BUDGET AFFECT YOUR TAX === BUDGET 2022-23 HIGHLIGHTS

-
  INDIVIDUALS   Low- and Middle-Income Tax Offset of $1080 will be increased for one year (2021-22) to $1500. The calculation will be based on income levels of everyone as explained below: Taxable income (TI)   LMITO 2021-22 (current)   LMITO 2021-22 ( proposed )     $0 - $37,000   $255   $675     $37,001 - $48,000   $255 + ([TI - 37,000] x 7.5%)   $675 + ([TI - 37,000] x 7.5%)     $48,001 - $90,000   $1,080   $1,500     $90,001 - 126,000   $1,080 - ([TI - 90,000] x 3%)   $1,500 - ([TI - 90,000] x 3%)     $126,001 +   Nil   Nil Ø   Low-i   Low-income tax offset for 2021-22 and 2022-23 (unchanged) Taxable income (TI)   Amount of offset     $0 - $37,500   $700     $37,501 - $45
Read more

JOBSAVER GRANT

-
  NSW Government COVID-19 JobSaver Grant The COVID-19 JobSaver Grant is now open for applications. Please note, this is different to the Business Grant that opened last   week. You may be eligible for both the Business Grant and JobSaver COVID-19 JobSaver Grant If you’re a business, sole trader or not-for-profit organisation in NSW and you've been impacted by the recent COVID-19 restrictions, you may be eligible for ongoing support through the JobSaver Grant.   To be eligible for the grant, you must: have an active Australian Business Number (ABN) demonstrate your business was operating in NSW as at 1 June 2021 have had total annual Australian wages of $10 million or less as at 1 July 2020 have had an aggregated annual turnover between $75,000 and $50 million (inclusive) for the year ended 30 June 2020 (if your business turnover is below $75,000 there is a MicroBusiness Grant that we will send a separate update about) have experienced a de
Read more

Extra Stamp Duty on transfer of land after 01/03/2020

-
From 01 March 2020 , in NSW   (other States to follow) Up to 8% extra stamp duty will be payable on purchase of land by a discretionary trust having a foreign beneficiary because it becomes a foreign trust as per Revenue office as every beneficiary in the discretionary trust may be entitled to the full capital of the trust. Applying the provisions to trusts, where a “foreign purchaser” had a beneficial interest in more than 50% of the capital of the estate of the trust, the trust would have been considered to be a foreign trust for the purposes of the additional duty. Disclaimer: Any information in this article is of general nature only. Any person should, before acting on the content, consider the appropriateness of it having regard to their own personal circumstances, and if necessary seek professional advice. J.A.P TAXATION and its employees or any related entities, do not accept any liability for any loss, damages or outgoings rising out of t
Read more