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is a vacant block of land considered a PPOR?

Discussion in 'Real Estate' started by robmillion, 10th Dec, 2010.

  1. robmillion

    robmillion Member

    Joined:
    13th Jun, 2009
    Posts:
    13
    Location:
    Melbourne, Vic
    If I sell a block of land that I purchased more than 12 months ago, are the interest payments and additional expenses incurred during ownership considered a tax deduction by the ATO?

    Given that I'm a FHB and currently living with parents, does that automatically qualify the block of land as my PPOR or would it be considered an investment property?

    Thanks in advance.
     
  2. samaka

    samaka Well-Known Member

    Joined:
    30th Sep, 2007
    Posts:
    308
    Location:
    Sydney
    You can't claim any deductions unless you earned an income. If all you did was hold the property then know. If you rented it out to someone, grazing land or even storing a trailer, then yes you could.
     
  3. jrc

    jrc Active Member

    Joined:
    3rd May, 2007
    Posts:
    32
    Location:
    Western, NSW
    If you didn't earn nay income from the land then holding costs such as rates and interest should be able to be added to the cost base - section 110.25 of the 1997 Act
     
  4. Catalyst

    Catalyst New Member

    Joined:
    18th Jun, 2008
    Posts:
    3
    Location:
    Sydney
    PPOR means Principal Place of Residence. In other words- where you live so NO.