Question:
I recently bought my first investment property in April 2010. Unfortunately it wasn’t rented out until early July. I wonder if I can still negative gear anything (claim tax deductions) for the period that the property was vacant though I received no rental income?
Answer:
Although you didn’t get any rental income for the period from April to early July, you will be able to claim a tax deduction for all of the ongoing costs and expenses incurred in that period – including interest, bank fees, body corporate charges, repairs, etc.