IP interest deductible after refinance?

Discussion in 'Accounting & Tax' started by zzkazu, 4th Jul, 2015.

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  1. zzkazu

    zzkazu New Member

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    4th Jul, 2015
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    Canberra ACT
    Hi I have recently refinanced our loans.

    PP + IP(1) + IP(2)

    New values and as such security has been held against the PP and IP’s. Is the interest on the new IP loans tax deductable or only the original interest associated with original purchase loan values?

    Thanks Greg
     
    zzkazu, 4th Jul, 2015
    #1
  2. Terry_w

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

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    Don't know what you mean.

    But if you have increased the loans the extra proportion will not be deductible unless you have borrowed to use the money for investment/business - and it will only be deductible once used for this purpose.

    Hope you haven't created a mixed purpose loan.
     
    Terry_w, 4th Jul, 2015
    #2
  3. Jess Peletier

    Jess Peletier Mortgage Broker & Finance Strategy, Aus Wide! Business Member

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    It would be good to get a clearer idea of the structure you've got - sounds like you might be all crossed up and topped up which isn't ideal at all.

    Ie - do you have one big loan?
    3 separate loans?
    6 seperate loans?

    And what are they secured by?
     
    Jess Peletier, 4th Jul, 2015
    #3
  4. zzkazu

    zzkazu New Member

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    4th Jul, 2015
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    Location:
    Canberra ACT
    Thanks that answers my question. I was mixing up security value vs loan amount.
     
    zzkazu, 4th Jul, 2015
    #4
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