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Interest Payment

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

  1. Frosty123

    Frosty123 Well-Known Member

    Joined:
    12th Nov, 2015
    Posts:
    55
    Location:
    VIC
    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 Solicitor, Finance Broker, CTA Business Member

    Joined:
    18th Jun, 2015
    Posts:
    8,982
    Location:
    Sydney
    It would be incurred when the loan is debited.
     
    Paul@PFI, Greyghost and Simon Moore like this.