Recently legislated changes to tax deductions for vacant land mean that from 1 July 2019, taxpayers will no longer be able to claim deductions for holding vacant land with the intention of building rental property.
“So, if you are building a rental property, you cannot claim the deductions for the costs of holding the land, such as interest,” Ms Foat said.
“However, if your rental property was destroyed in the bushfires and you are currently rebuilding, you can claim the costs of holding your now vacant land for up to three years while you rebuild your rental property.”
The new law will not apply to land that is used in a business.