If I have pre-paid up to 12 months interest in advance on an investment property loan, could there be a taxation issue if I decide to sell the property midway through the pre-paid term? 1. From the bank's perspective, I believe I would just be issued a refund of the pre-paid interest at settlement, correct? 2. From taxation perspective, let's say the property will be on the market for selling for a few months, thus not tenanted and not available for rent until settlement. Is the interest charged during that vacancy period still tax deductible?