Interest repayments or interest charged tax deductible? Need clarification!

Viewing 7 posts - 1 through 7 (of 7 total)

harryandlloyd
Member
@harryandlloyd
Join Date: 2011
Post Count: 20
July 15, 2011 - 3:50 am
Hi All,
In the process of settlement for our 1st IP and seek clarification on interest.
Are weekly/monthly interest repayments (on IO loan) tax deductible or is the monthly interest charged tax deductible or is it both?
Cheers
Kate
Terryw
Participant
@terryw
Join Date: 2001
Post Count: 16,213
July 15, 2011 - 3:54 am
Wouldn't it be the same?
banks only charge you interest once per month. Whether you pay this weekly or monthly it will still be the same amount.
If you pay anymore it will be coming off the principle of the loan.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email Me
Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
harryandlloyd
Member
@harryandlloyd
Join Date: 2011
Post Count: 20
July 15, 2011 - 4:00 am
Hi Terry,
I figured it would be the same, but thought a post would clarify.
You can see my Investor L Plates a mile away!!!
Cheers
Kate
Terryw
Participant
@terryw
Join Date: 2001
Post Count: 16,213
July 15, 2011 - 4:03 am
nevermind. It is always good to run things by others for different ideas.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email Me
Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Jamie Moore
Participant
@jamie-m
Join Date: 2010
Post Count: 5,069
July 15, 2011 - 9:16 am
Yep, it's the same.
There's no harm in asking though – that's what this forum's for.
Congrats on the first IP
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone Me
Mortgage Broker assisting clients Australia wide Email: [email protected]
harryandlloyd
Member
@harryandlloyd
Join Date: 2011
Post Count: 20
July 15, 2011 - 1:23 pm
Aaah Jamie – looks like you caught me red handed! I was going to PM you about this then thought you'd probably enjoy a few weeks reprieve from myself and Mark!!
Does anything get past your eagle eye in these forums!?
Thanks for all your help by the way – it would be no IP without you!
Cheers
Kate
Jamie Moore
Participant
@jamie-m
Join Date: 2010
Post Count: 5,069
July 15, 2011 - 11:12 pm
harryandlloyd wrote:
Aaah Jamie – looks like you caught me red handed! I was going to PM you about this then thought you'd probably enjoy a few weeks reprieve from myself and Mark!!
Does anything get past your eagle eye in these forums!?
Thanks for all your help by the way – it would be no IP without you!
Cheers
Kate
Haha, no worries at all. You guys can call/email me whenever you like! That's what I'm here for.
Talk soon
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone Me
Mortgage Broker assisting clients Australia wide Email: [email protected]