Refinancing Cost

Discussion in 'Accounting & Tax' started by Balman, 6th Feb, 2016.

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  1. Balman

    Balman Well-Known Member

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    18th Jun, 2015
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    Perth
    Hi

    just wondering how costs involved when moving from one lender to another are treated? are they deducted in the year of occurrence or capitalised or otherwise?

    Thanks
     
    Balman, 6th Feb, 2016
    #1
  2. Terry_w

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

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    Depends what sort of costs, whether the loan related to the production of income and whether there was any other purpose.

    Assuming relating to an investment property with no mixed loan purpose:
    Discharge of mortgage would be deductible in full

    Break costs for fixed loans would generally be deductible in full

    Application fees, LMI and other borrowing costs would be a borrowing cost and deductible over 5 years
     
    Terry_w, 6th Feb, 2016
    #2
    Balman likes this.
  3. Balman

    Balman Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    254
    Location:
    Perth

    hi

    The costs involved are discharge and registration of the mortgage per investment loan. Leaving Westpac costs and settlement cost with the new bank. Would these all be deductible in the year of occurrence or otherwise? Cannot seem to find and clear guidance on the auto site.

    Thanks
     
    Balman, 15th Feb, 2016
    #3
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