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Are Refinance Costs Claimable?

Discussion in 'Accounting & Tax' started by Andrewtfarr, 5th Jun, 2016.

  1. Andrewtfarr

    Andrewtfarr Active Member

    Joined:
    3rd Nov, 2015
    Posts:
    26
    Location:
    Sydney, NSW
    Hi All,

    I have just re-financed two loans (for one property) from one lender to another. Are all of these costs claimable on my tax return. If so, do they go into yearly tax return or are they capital costs?

    There were costs relating to:

    Accounts being closed:
    - Fee for attending settlement

    Settlement of new loan:
    - Settlement Fee
    - MSA (think this is legal fees
    - LPI (no idea what this is)


    Many thanks!
    Andy
     
  2. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

    Joined:
    14th Jun, 2015
    Posts:
    1,174
    Location:
    Gold Coast
    the exit costs from the old lender ar deductible in the year incurred

    the new costs are depreciable over 60 mths or the term of the loan whichever is less

    Im not an accountant, but thats the general advice my clients have nee provided.

    this all assumes investment property and the proceeds of the purpose of the refinance are deductible

    ta
    rolf
     
  3. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    18th Jun, 2015
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    Location:
    Sydney