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IP interest deductible after refinance?

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

  1. zzkazu

    zzkazu New Member

    Joined:
    4th Jul, 2015
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    Location:
    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
     
  2. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    18th Jun, 2015
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    9,043
    Location:
    Sydney
    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.
     
  3. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

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    18th Jun, 2015
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    Location:
    Perth WA
    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?
     
  4. zzkazu

    zzkazu New Member

    Joined:
    4th Jul, 2015
    Posts:
    2
    Location:
    Canberra ACT
    Thanks that answers my question. I was mixing up security value vs loan amount.