Claiming back interest paid before settlement

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

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  1. meme plecko

    meme plecko Well-Known Member

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    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)?
     
    meme plecko, 20th Jun, 2015
    #1
  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    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.
     
    Terry_w, 20th Jun, 2015
    #2
  3. meme plecko

    meme plecko Well-Known Member

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    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
     
    meme plecko, 20th Jun, 2015
    #3
  4. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    That is the best way to do it
     
    Terry_w, 20th Jun, 2015
    #4