Real Estate Tips | Landlord Tenant

Real Estate Tips: Building A New House

Tuesday, October 21st, 2008

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Most of the couples contemplate building a new home and renting out their old PPR (Primary Place of Residence), but are in doubt about the ATO’s (Australian Tax Office) rules as per the deductibility of the interest on each property’s mortgage.

If you ask yourself, which property is gaining “assessable income” the answer will be obvious. Interest on the old home will now be deductible, as it is now earning assessable income but no more the new home, as it is not earning assessable income. Continue reading…