LMI

Quick question before tax time

I purchased a property in 2017 FY with a 10% deposit.

I claimed 1/5 of the LMI in 2017 and 2018 FY.
In 2019 I refinanced my property to another bank and had to pay LMI again. I then claimed LMI with bank two in 2019, 2020 and 2021 FY.

I have again refinanced and did not pay LMI.

Am I entitled for the 3/5 of LMI from bank 1
And 2/5 of LMI for bank 2 or is it just bad luck?

thanks,
The Don

 

It would be unlikely that you could claim 1/5th in the first year unless it settled on 1 July.
When you refinanced in 2019 you could have claimed the remaining LMI on the first loan
If you just refinanced you could claim the remaining LMI on th e second loan.

 

I have not claimed the remaining LMI amounts. So is it possible to claim it this FY?

 

No.

 

Not on the first loan anyway, you would need to amend the relevant tax return.

 

Its possible the return impacted could be out of time to amend as the period to amend is typically 2 years from the date of assessment. Some taxpayers may access a 4 year window. . That said, I have never seen the issue given a private ruling but would consider that the unclaimed LMI could be PARTIALLY claimed in a later amended return that is within its period of amendment. The part which cant be amended may become a third element CGT cost.