Discussion in 'Accounting, Tax & Legal' started by Sunny333, 1st May, 2008.
Are costs from refinancing investment property loans tax deductable?
Found in the legal database at Australian Taxation Office Homepage
Should provide an interesting read.
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)?
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.
Separate names with a comma.