Can I claim interest paid on a bond as an expense for an investment property where I receive rent. Will that differ for the interest paid on a bond for an empty stand (also investment) where no rent is received yet?
You can claim interest against the rental income yes. With the property that is empty, are you actively seeking a tenant for the land?
Mattsays: 28 October 2015 at 8:48
It is an empty stand in an estate. We have a buyer that wants to build, he will start paying occupational rent as soon as he starts, but that might take 12 months.
TaxTimsays: 28 October 2015 at 16:52
Unfortunately then you will not be able to claim the interest as you are not actively seeking a tenant, but looking to sell. When the occupational rent comes in then you may be able to claim the interest then against that rent.
Get Tax Deadline Reminders, News and Tips
We'll tell you when you need to file, along with tax tips and updates.