Can interest charged on vacant land loan be cosidered as capital expenditure for CGT

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(Newbie)Newbie

14 Oct 2024

Hi,

Lets assume I buy a vacant land in July 2024. I get the finance from bank as per residential investment property. Now I start the construction in Nov 2024 on it. For construction there is a separate loan. Construction gets completed in June 2025 and now available for rent and then rented from 1st July 2025.

So I know I can claim interest paid on both of the loan effective from 1st July 2025 as deduction. I also know that interest paid on land loan is not deductible till construction is completed and available for rent. However my questions are :

Can the interest charged on land loan between July 2024 to June 2025 be added to cost of holding land and can be deductible from capital gain when I sell this investment property?
Can I claim interest paid on construction loan from Nov 2024 itself as deduction as it is for investment purpose to be rented.?

Regards

Adit

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