Didn't think it could get any worse...

Lawry, iirc my new mortgage (to cover the shortfall) is still tax deductable according to my Accountant because it is still associated with the business side of things rather than personal expenditure. The accountant said something about it being deductable "for a reasonble length of time".

I was unable to claim the interest on my Gladstone mortgage from the time the tenant vacated until settlement day.

 

Yes it could be depending on how it is structured.

 

Another option that may work - if you ever end up in this scenario you can actually seek services of companies, who are experienced in negotiating with the creditors (banks).

The banks don't want these properties in mining towns, what the hell will they do with them ? The point is I know someone who has successful resolved their financial issues going down this road and much higher debt level that ems. This is an example you may negative perhaps $2 cents in the $1.00 with the bank etc etc

There are companies that do this on your behalf, there is also ways to protect your primary residence, I am not an expert in this area, however as I mentioned I know someone who has successful done this. It could take a number of years to unravel and its a process and could take up to 3 years but the outcome could be a massive win and when you have very few options this could actually be a winner??

MTR

 

My accountant said yes this is deductible - but as Terry mentioned, depending how it's structured. My loan was stand alone, against that property only and was never used for any private expenditure (was a LOC at one point). So in my case, deductible.

 

I wrote a tax tip on selling at a loss and keeping the loan open:

Tax Tip 71: Deduction of interest after assets sold https://propertychat.com.au/communi...deduction-of-interest-after-assets-sold.5245/

 

Well if it her agency, can't feel too sorry for her as incoming and outgoing costs for buy/sell will be low & can funnel buyers/sellers for own benefit.