Tax deductibility question - funds used for repairs

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

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  1. HappyCamper

    HappyCamper Well-Known Member

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    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?
     
    HappyCamper, 21st Apr, 2016
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  2. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    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
     
    Paul@PAS, 21st Apr, 2016
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