All Topics / Help Needed! / Equity loan and deductibility

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  • Profile photo of zigzagzigzag
    Member
    @zigzag
    Join Date: 2004
    Post Count: 4
    August 30, 2004 - 10:22 am

    If equity was used as the 20% deposit for an investment property to pay for legals and stamp duty, is the interest tax deductible.
    What would happen if I paid the monthly interest on a investment property (io) loan out of a line of credit, can u claim interest on interest
    it sounds confusing, can any one help
    Thanks
    zig zag

    ZigZag
    Imagine what you could achieve if you knew you couldn’t fail

    Profile photo of Mortgage HunterMortgage Hunter
    Participant
    @mortgage-hunter
    Join Date: 2003
    Post Count: 3,781
    August 30, 2004 - 10:31 am

    The interest is deductible however I don’t believe you can claim capitalised interest.

    There has been quite some publicity of this of late.

    Cheers,

    Simon Macks
    Mortgage Broker
    http://www.mortgagehunter.com.au
    0425 228 985

    NODOC Loan – 65% Loan – No questions asked!

    Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.

    Profile photo of DerekDerek
    Member
    @derek
    Join Date: 2004
    Post Count: 3,544
    August 30, 2004 - 10:46 am

    Hi Zig,

    Agreeing with Simon – deposit funds and expenses are deductible. Interest on interest no.

    Derek
    [email protected]

    Property Investment Support Available. Ongoing and never stopping. PM welcome.

    Profile photo of MJTMJT
    Member
    @mjt
    Join Date: 2004
    Post Count: 80
    August 30, 2004 - 11:12 pm

    Hi Guys,

    I am in exactly the same boat and I second the previous posts.

    Matt

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