Greetings Knowledgeable ones,
I purchased my first IP in october last year and just want to get all my deductibles in order before end of financial year.
My equity from PPOR was drawn into a separate loan at a total of 37k. interest payed back monthly at interest only at a total of about 150 a month or so, my question is, is the interest on this loan part of the purchase cost/tax deductible?
Thank you in advance
Hi Miz
Yes if you are saying at the time of purchasing your 1st IP you set up a separate sub loan and drew down the funds for the part deposit etc then Yes the interest would be deductible.
It is the purpose of the funds and not the security used which is the defining fact.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
outstanding, thank you!!!
Qlds007 wrote:It is the purpose of the funds and not the security used which is the defining fact.
That's the key Miz.
It's all about purpose. If it's being used for investment purposes the funds are deductible.
That's why it's good you set up the loan as a separate facility.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
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