A number of years ago we purchased a second property, a small farm with about 60 acres of land. We do not live on the property and the purchase is funded via a mortgage. We purchased the property with the dual intention of using it recreationally on weekends and returning the run-down pastures and fencing to a functional state for income purposes, either from having our own livestock or from agisting other peoples’ stock. We have over time accrued substantial input costs such as fencing, weed management, heavy plant hire and other general recurring costs such as mortgage interest. We are not Primary Producers and haven’t claimed any deductions as we thought of the property more as a hobby farm / weekend arrangement even though it was and is our intention to gain income once the fencing is stock-proof and other rural infrastructure such as water troughs are in place.
My questions;
- Is the property classed as an investment property and if so, can we claim deductions for some of the expenses we have incurred, such as fencing, weed management and mortgage interest?
- If it is not a small farm investment property how is it classed?
- If expenses are claimable, can we retrospectively claim deductions for previous financial years?
- Agistment income will be declarable in my personal income via an employer?
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