The ATO have changed the rules for property investors which now limits the deductions for vacant land, irrespective of when the land was acquired.

In short, expenses are no longer tax deductible. Instead, all expenses relating to land must accrue as capital costs (Holding Costs). These holding costs will become an adjustment in the capital gains tax calculation if the property is sold in the future.

Property is often held long term so to ensure none of these holdings costs are lost over the years we've created a portfolio just for land.

The land portfolio works just like all the other portfolio capturing expenses and documents, however the expenses do not impact your tax summary, instead they accrue in the 'Holdings Costs' report on the property tab which can be downloaded by selecting the arrow icon.

If you ever sell the property these holdings costs will pre-fill as an adjustment when calculating the cost base to automatically reduce the profit on sale and ensure you pay the least amount of capital gains tax!! That's why its so important to keep good records ;)))

When the house is built and ready for a tenant your property can be moved from the 'Land Portfolio' to an investment portfolio. To do this select the 'Move property' feature on the property tile, choose the category you want to move the land too, then enter the date the property became available for rent and the market value as at that date.

You can also upload any important documents here as well, like an appraisal or valuation, which will be stored for safe keeping.