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Tax claim on Interest

Discussion in 'Accounting, Tax & Legal' started by pearls, 7th Nov, 2012.

  1. pearls

    pearls Member

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    qld
    Hello,

    I intend to sell my only property (which is rented out), after this sale can I buy another property and rent it out without living in it for certain period and claim on the interest againt that home loan considering that I own just one property...
     
  2. Simon Hampel

    Simon Hampel Co-founder Staff Member

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    If your property is rented out and you declare the income earned, you can claim all valid expenses - which includes interest on the loan used to purchase that property.

    The loan must have been for purchasing the property that is rented out though.
     
  3. pearls

    pearls Member

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    qld
    Thanks Sim for a detailed reply...

    Could you also clarify one more doubt, I works in construction industry and want to do MBA degree, I have PR, could I be able to claim all/part of the fee that I will spend on my MBA (I am paying about 30% of tax on my income which is >33000) though MBA is not really my field,just to boost my CV and learn good skills.

     
  4. Simon Hampel

    Simon Hampel Co-founder Staff Member

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    I believe the ATO takes the view that if the training is directly related to the work you do, you can claim the costs as a deduction.

    However, if the training is aimed at improving your employability or earning capacity or in an unrelated field, you cannot claim it.

    For more information read: ATO: Claiming self-education expenses

     
  5. pearls

    pearls Member

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    Thanks again Sim for the detailed reply.