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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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    Location:
    Southern Highlands NSW
    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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    Location:
    Perth WA
  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.