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Tax deductibility question - funds used for repairs

Discussion in 'Accounting & Tax' started by HappyCamper, 21st Apr, 2016.

  1. HappyCamper

    HappyCamper Active Member

    Joined:
    18th Jun, 2015
    Posts:
    41
    Location:
    Sydney
    I refinanced an investment property loan in 2014 to pull out some equity and make the next purchase. After making the next purchase, there were some leftover funds which I have left in the loan itself (not the offset). Am I able to use these funds to pay for a repair on another investment property while keeping the tax deductibility of that loan?
     
  2. Paul@PFI

    Paul@PFI Tax Accounting + SMSF Business Member

    Joined:
    18th Jun, 2015
    Posts:
    2,388
    Location:
    Sydney
    Yes ...But you then have a blended loan. Some of the borrowed money used for one IP and the balance for the other. It would be important to maintain a record of that % and then thereafter claim the interest in the same % against each property.

    Its not perfect but is OK
     
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