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Time of interest charge

Discussion in 'Accounting & Tax' started by Frosty123, 1st Jan, 2016.

  1. Frosty123

    Frosty123 Well-Known Member

    Joined:
    12th Nov, 2015
    Posts:
    54
    Location:
    VIC
    Hi all,

    I have my IP loan account statement showing the interest payment taken on the last day of the month. The money gets taken from the offset account the following day (first day of the month).
    When claiming expenses come tax time, would I consider the expense occurring on the last day of the month or first?

    Thanks

    Frosty
     
  2. MikeLivingTheDream

    MikeLivingTheDream BCOM MCOM MTAX CPA CTA Registered Tax Agent

    Joined:
    24th Jun, 2015
    Posts:
    227
    Location:
    Philippines
    You have incurred the interest charge on the last day of the month so will be claimable on the last day of the month.
     
    Frosty123 likes this.
  3. dabbler

    dabbler Well-Known Member

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    18th Jun, 2015
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    Location:
    Sid en e - olympic city
    I would ask them actually, or look on the statement, it may be that it is taken same day but does not show till next, or may in fact be taken the next.