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Giovanna can claim the interest costs for the construction loan but not the initial loan to purchase the vacant land. This is because interest expenses associated with constructing a structure on the land are not cost...
Our goal is to provide clear, practical insights to help you navigate the complexities of claiming interest on vacant land and construction. Can You Claim Interest on Vacant Land? From 1 July 2019, the Australian Taxa...
Confused about claiming interest on a land loan in Australia? This 2025 guide explains what’s deductible, what’s not & how to stay ATO-compliant and tax-smart.
Had a client reviewed (former agent) a few years ago just aftre vacant land rules where they used a rental schedule and ATO staff amended the return to move the construction interest deduction and exclude the $1 incom...
Find out which interest expenses you can claim and what to do if your loan account is used for private purposes.
This distinction is crucial because it allows for immediate tax deductions. To break it down: If you have a construction loan for a property you plan to rent out, you can claim the interest on that loan as a tax deduc...
The ATO has released Taxation Ruling TR 2023/3 setting out the Commissioner’s views in relation to the application of s. 26-102 of the ITAA 1997 which limits the deductions available for expenses incurred in relation ...
Let’s break it down with a simple example. Mallory buys a vacant lot and plans to build a rental property. She takes out two loans: one for the land and one for construction. She can’t claim the interest on the land l...
Hoping to claim tax deductions on your vacant land? You need to meet a number of strict conditions to claim for costs such as interest payments on relevant loans, land taxes, council rates and maintenance costs. So, w...
Rental properties Interest expenses You can claim interest paid on the amount you borrow, or a portion of the interest, where the interest relates to earning assessable income. You can't claim any payments for paying ...
Expenses deductions, including interest, relating to holding vacant land have been denied or limited under section 26-102 of the Income Tax Assessment Act 1997 by the Australian Taxation Office (ATO) since 1 July 2019.
Recently, I have come across the article below which states: "Towards the end of the 2023 calendar year, the ATO clarified its stance on vacant blocks of land and the deductibility of interest on construction loans. A...
