ppor to investment property

Discussion in 'Investment Strategy' started by david noble, 28th Aug, 2011.

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  1. david noble

    david noble New Member

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    1st Jul, 2015
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    bendigo
    My wife bought our previous ppor without needing to obtain a mortgage so it is debt free. We moved and we now wish to make that previous ppor a rental investment property. How will the ATO view a newly established residential investment loan on this property? Are we able to deduct the interest and other expenses usually associated with rental properties. I know that if I purchase the property then I can treat it as an investment property, but I am not keen to incur the stamp duty and other expenses of that transaction. Does anybody have any advice?

    David
     
    david noble, 28th Aug, 2011
    #1
  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    David,

    ATO will look at the purpose of the borrowings - where is the money going and what it is used for. If it is for private expenses then you won't be able to claim the interest.

    You should be able to deduct the other expenses associated with the property if it is being rented out.

    And, if your property is in VIC you could probably transfer the property from your wife to yourself without stamp duty. But, your wife may be up for CGT depending on her circumstances.

    So it may work out well if you purchase the property from your wife.
     
    Terry_w, 28th Aug, 2011
    #2