SearchInterest deductibility on new builds
Ray & Althea Wilson asks:
(updated on Tuesday, April 12th 2022)
Interest deductibility on new builds for 20 years with code of compliance certificate after March 27,2020 irrespective of who the owners are over that period .It applies to rental properties but is it claimable by everyone else including new home buyers ? That is how I read it but clarification of this point would help many facing the very high costs of buying a new home especially first home buyers
Our Experts Answer:
The fundamental requirement for there to be a nexus between the interest cost and taxable income flowing from the asset acquired remains a requirement for interest to be deductible with a nee build. So interest is claimable off a new build is acquired to derive rental income or is deductible if the property is purchased for on sale.
A first home buyer buying to live in the property is unable to claim interest regardless of whether it is a new build or not.
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