Interest Payment

Discussion in 'Accounting & Tax' started by Frosty123, 30th Jun, 2016.

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  1. Frosty123

    Frosty123 Well-Known Member

    Joined:
    12th Nov, 2015
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    Hi all,

    If I have an IO Loan where the interest is debited from the account on 30th June 2016, and then the funds are drawn from the linked offset account for that loan on 01 July 2016, is this payment deductible against the property for the 2015-2016 FY or 2016-2017?
    i.e which transaction can be deducted against the properties income.

    Thanks

    Frosty
     
  2. Terry_w

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

    Joined:
    18th Jun, 2015
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    Australia wide
    It would be incurred when the loan is debited.
     
    Paul@PAS, Greyghost and Simon Moore like this.

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