Help from those more knowledgeable please!

I'm in a pickle & would be very interested in your opinion on the following:

This is the situation:

PPOR in husband & wifes name, no debt. Refinanced to 80% LVR & invested into Managed funds in wifes name (loan in both names).
IP#1 title & loan in husbands name.
IP#2 title & loan in wifes name.

Refinanced all three loans to Westpac's Premiere Advantage Package.

While tax claimability on both IP's is straight forward, how would I claim such things as Registrar General fee, Setup recovery fee, discharge fee & the Annual Package fee on the PPOR loan. Would I claim that against the Managed fund?

Would really appreciate your opinion(s). Thanks.

 

Gad,

Not being familiar with the exact products I can only give a general idea on deductibility. Assuming ALL loan proceeds are for earning assessable income:

1. Mortgage discharge fees on loans used to produce assessable income are deductible when paid. This can include early repayment penalties representing lost interest income to the lender.

2. Recurring expenses such as interest and admin (annual package fee ?) on investment loans are deductible when paid.

3. Loan establishment fees are deductible over time (unless no greater than $100). Use the duration of the loan or 5 years, whichever is the shorter.

You will need to get your Accountant to check exactly what each fee represents as you cannot just rely on the name given to it, so take the old and new contract with you when you visit them.

'Registrar General Fee' sounds like a legal court fee to me !!

Cheers,

Rob

 

Thanks Rob G. Much appreciated.