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Richard | 11 Mar 2013, 11:34 AM Agree 0

My wife and I are on the verge of buying a property in victoria that we would like to use as our residence when we retire however retirement is about 20 years away and in the meantime we will rent it out.

I'm trying to find out if we can claim stamp duty on the purchase to save us some money. Also has anyone got any other tax tips or gotchas for someone in my situation.

  • Eos Property | 12 Mar 2013, 11:24 AM Agree 0
    Hi Richard,

    All expenses such as loan interest, repairs, property management fees, rates, insurance will be deductible.

    On top of this you will also be able to claim depreciation on the property. Depreciation falls into two groups, capital works - the building itself and plant and equipment - the removable bits. It may be worth your while getting a quantity surveyor into assess the property and provide you with a depreciation report. These claims can, depending upon a range of factors, be quite substantial.

    Any stamp duty you incur can be used to offset and y capital gains you make. So while this cost is not deductible it does reduce you capital gains exposure at eventual time of sale.

    For more information on being a landlord check out this ATO link
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