Interest deduction

Discussion in 'Accounting & Tax' started by erorxxx, 21st Jul, 2017.

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  1. erorxxx

    erorxxx Well-Known Member

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    can you claim interest on IP mortgage which hasn,t been paid yet?

    So my interest payment due on 5th day every month as financial year end cut of is on 30 June, can I claim the interest from 6 june to 30 June ? Although this was paid on 5 july

    Thank you :)
     
    erorxxx, 21st Jul, 2017
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  2. Terry_w

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

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    When was it added to the loan? because you are not legally required to pay it until the lender adds it to your loan balance.
     
    Terry_w, 21st Jul, 2017
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  3. Ross Forrester

    Ross Forrester Well-Known Member

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    You can claim the interest on a loan when it is an amount that can be quantified and you cannot escape from.

    So if the interest for the month of June 17is debited on 1 July you can claim the interest in the 17 year.

    If it is on 5 July but includes 4 days of the July interest you have to apportion the July interest (which relates to the 18 year) out of the payment.

    Your accountant should be able to handle that easily.
     
    Ross Forrester, 21st Jul, 2017
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    Terry_w likes this.
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