Mortgage termination fee during refinance

Discussion in 'Accounting & Tax' started by Jobeki, 15th May, 2020.

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  1. Jobeki

    Jobeki Active Member

    Joined:
    19th May, 2016
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    Brisbane
    Heya guys
    During a refinance Is the mortgage termination fee (Not break fees) from one bank deductible or a capital cost? If deductible presumably I can capitalise it on the new loan and claim interest on I?
     
  2. Terry_w

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

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    The mortgage discharge fee would be deductible when incurred - assuming it was relating to a loan on which the interest is deductible. You could borrow to pay it.
     
  3. Jobeki

    Jobeki Active Member

    Joined:
    19th May, 2016
    Posts:
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    Location:
    Brisbane
    Thankyou Terry... appreciate it!
     
    Terry_w likes this.