Join Australia's most dynamic and respected property investment community

Claiming back interest paid before settlement

Discussion in 'Accounting & Tax' started by meme plecko, 20th Jun, 2015.

  1. meme plecko

    meme plecko Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    200
    Location:
    sydney
    Hi PropertyChatters :)


    Purchased IP in April this year and settlement is booked for July 1.

    Had to pay 10% holding deposit, transferred funds from a loan on another property which I refinanced.

    Any issues claiming this interest paid between April and June 30 for this financial year (settlement booked for July 1)?
     
  2. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

    Joined:
    18th Jun, 2015
    Posts:
    8,940
    Location:
    Sydney
    It could be deductible, depends how you transacted it. If straight from the loan account then should be ok. If via an offset account then maybe not.
     
  3. meme plecko

    meme plecko Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    200
    Location:
    sydney
    Thanks Terry,

    I've had a new split account added to my loan for the purpose of purchasing an IP and the money was taken out of that account
     
  4. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

    Joined:
    18th Jun, 2015
    Posts:
    8,940
    Location:
    Sydney
    That is the best way to do it