Refinancing IP claiming costs?

Discussion in 'Accounting & Tax' started by Tim86, 8th Jul, 2015.

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  1. Tim86

    Tim86 Well-Known Member

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    How do you go about claiming costs of refinancing an IP loan?

    Say you had to pay out a fixed interest portion of a loan to refinance, and you also had to pay all the associated government fees and new loan fees etc...

    What can you claim exactly? And how can you claim it (in the one go, over a couple of years?)

    In this particular example the loan was refinanced during the process of buying out the other person in a joint ownership of an IP. All funds went toward the investment property as the other half had to be purchased.

    Thanks
     
    Tim86, 8th Jul, 2015
    #1
  2. tobe

    tobe Well-Known Member

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    I'm not an accountant, but I'm pretty sure my accountant put refinancing costs into my tax return in the year they were incurred, along with the remainder of LMI I had been starting to claim over 5 years.
     
    tobe, 8th Jul, 2015
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  3. Terry_w

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

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    Borrowing costs are deductible over 5 years OR the life on the loan. Loan ends on being refinanced.
     
    Terry_w, 9th Jul, 2015
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  4. Tim86

    Tim86 Well-Known Member

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    Thanks for the help.
     
    Tim86, 9th Jul, 2015
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