Deduct-ability of loan interest for renovation of PPOR converted to IP

Discussion in 'Accounting & Tax' started by lazyhorse, 25th Jan, 2020.

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  1. lazyhorse

    lazyhorse Active Member

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    Question

    Took a loan in FY2015 to renovate PPOR - > new roof + extension; converted said PPOR to IP FY2018.
    Should the interest on the loan be deductible? If not could it be included as cost base for CGT?

    Cheers
     
  2. Terry_w

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

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    It could be depending
     
  3. Ross Forrester

    Ross Forrester Perth business advisor and founder

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    More likely than not it is deductible. Facts will affect the final answer.

    Maybe some capital works.
     
  4. lazyhorse

    lazyhorse Active Member

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    Thanks for the response - any facts that could help either way?
     
  5. Terry_w

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

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    How did you pay the expenses with borrowed money?
     
  6. Mike A

    Mike A Accountant

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    Maybe fully deductible

    Maybe mixed

    Maybe not deductible at all

    Really need to discuss all the facts with your adviser.

    Im a director of another accounting business and the errors we are seeing from new matters is amazing

    Most is due to not discussing the particulars of the matter with their adviser

    Small facts can change the outcome
     
    Ross Forrester likes this.