i got a question on interest that is tax deductable.
for eg:
we buy 100k IP, borrow $80k, say for eg. interest paid is $5600, is this tax deductable?same scenario but have extra $30k to put into the mortgage. hence borrowed money is $50k. say interest paid is $3500, hence which amount is being able to deduct from tax? $5600 or $3500?
Hi Milen,
Rather than get into an explanation myself, you will more than likely find the info you require at the ATO’s website.
As a general comment – you cannot claim the interest if you haven’t actually incurred it as a cost
If this link doesn’t work try
http://www.ato.gov.au/ and follow the links through to rental properties
Cheers
KymThanks
hence the idea is that the excess fund is better of invested somewhere or put in CD?
Hi Milen,Rather than get into an explanation myself, you will more than likely find the info you require at the ATO’s website.
As a general comment – you cannot claim the interest if you haven’t actually incurred it as a cost
If this link doesn’t work try
http://www.ato.gov.au/ and follow the links through to rental properties
Cheers
Kymwhat will you guys do if got some cash sitting on saving account? pay off the mortgage? invest? such as?
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