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Can you claim interest on your whole cost base?

Discussion in 'Accounting & Tax' started by Shahin, 7th Jun, 2016.

  1. Shahin

    Shahin Member

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    I still have debt on my place of resident let say 700k . I bought a IP for 400k that with the expenses has costed me 415 K . I got a lone for 350K and Paid the rest with Cash. Can I calculate the interest for my IP on the loan 350K plus 65 K from my PPOR loan.
     
  2. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    No - well it depends. You say 'cash' but also say $65k from your PPOR loan.

    If you borrowed the $65k then maybe you could claim the interest on this. But there are many issues.

    See my tax tips about interest deductibility.
     
  3. Paul@PFI

    Paul@PFI Tax Accounting + SMSF Business Member

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    I'm confused too by the expression "$65K from my PPOR loan" v's the $350K paid by borrowed funds.
     
  4. York

    York Finance Broker Business Member

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    I think he means that he borrowed 350k to purchase the IP and also pulled 65k from his PPOR as a deposit plus costs. He may be confusing 'cash' with the funds he pulled out of his PPOR.
    I think he is asking is the interest on the 65k deductible also? Of course there are is alot of guessing here. Perhaps the OP can elaborate a bit more for us to get a better understanding of the situation? I hope the 65k was pulled via a split or its going to be a urine smelling mess.
     
  5. Shahin

    Shahin Member

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    Sorry to confuse you. I had 65 in my offset account and used it to pay for purchasing IP. Can I use the interest on 65K included in my costs?
     
  6. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    no
     
  7. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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