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Refinancing costs

Discussion in 'Accounting, Tax & Legal' started by Sunny333, 1st May, 2008.

  1. Sunny333

    Sunny333 New Member

    Joined:
    1st May, 2008
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    Location:
    Melbourne, VIC
    Hi

    Are costs from refinancing investment property loans tax deductable?

    Thanks heaps!
    S
     
  2. Rob G.

    Rob G. Well-Known Member

    Joined:
    6th Jun, 2007
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    Location:
    Melbourne, VIC
  3. Sunny333

    Sunny333 New Member

    Joined:
    1st May, 2008
    Posts:
    2
    Location:
    Melbourne, VIC
    Hi

    Thanks for thepost. That helps.

    I also want to check what happens in the following scenario

    I incurred borrowing costs from when I intially took out the loan 2 years ago to purchase this investment property.

    That's currently being claimed over a 5 year period. So if I incure refinancing costs which is also tax deductable, then do I claim that over a seperate 5 years period or add it onto what I have left from my first lot of claims (which has 3 years left)?

    Thanks again
    S
     
  4. Rob G.

    Rob G. Well-Known Member

    Joined:
    6th Jun, 2007
    Posts:
    717
    Location:
    Melbourne, VIC
    That could be open to interpretation if it was merely varying terms with the current lender.

    Generally, if the original loan is repaid in full, you deduct all the remaining amount in that year.

    Also, the costs of establishing the new loan will be amortised over 5 years from the new start date.

    This is only general.

    Cheers,

    Rob