![]() on a loan you used to buy a new home if you don't use the new home to produce income, even if you use your rental property as security for the loan.on the portion of the loan you use for private purposes (for example, money you use to purchase a new family car), either when.for any period you used the property for private purposes, even if it's a short period of time.You can't claim a deduction for interest expenses you incur: End of example Interest expenses you can't claim Kosta and Jenny can each make an interest claim of $15,000 on their respective tax returns for the first year of owning the property. They incur interest of $30,000 for the year. They rent out the property for the whole of the year from 1 July. Kosta and Jenny take out an investment loan for $350,000 to purchase an apartment they hold as joint tenants. The property must be rented or available for rent in the income year you are claiming a deduction for the interest expenses. ![]() You can't claim a deduction for the additional payments you make to reduce the principal amount of the loan. If you take out a loan to purchase a rental property, you can claim a deduction for the interest charged on the loan or a portion of the interest. The principal amount is the money you borrow from your bank or lender. Interest expensesĬharges on the principal amount of the loan that you take out for a rental property are known as interest expenses. The cost must also be charged to either the special purpose fund or the general purpose sinking fund, if a special contribution has been levied.įor a summary fact sheet of what you can and can't claim that you can download as a PDF see, Rental properties – body corporate fees and charges. You may be able to claim a capital works deduction for the cost of capital improvements or repairs of a capital nature once the work is completed over a period of time. If you are required by the body corporate to pay a special levy to fund a particular capital improvement, these levies are not deductible. You can claim an immediate deduction for these regular payments at the time you incur them. Regular payments you make to body corporate administration funds or general purpose sinking funds for ongoing administration and general maintenance are considered to be payments for the provision of services by the body corporate. a special purpose fund, for a specific expense – for example, roof repairs and building insurance.cover the cost of day-to-day expenses to maintain and manage the building – for example, insurance premiums, maintenance of gardens and management of the body corporate itself.These fees and charges may go towards payments to: You may be able to claim a deduction for body corporate fees and charges you incur for your rental property. ![]() Strata title body corporates are constituted under the strata title legislation of the various states and territories. Body corporate administrative fund fees and chargesīody corporate fees are a cost you pay to the body corporate or strata to manage the property and maintain common areas.
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