All Topics / Finance / Using equity in IP for some other IP expenses.

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  • Profile photo of Glenn1964Glenn1964
    Member
    @glenn1964
    Join Date: 2008
    Post Count: 30
    July 6, 2009 - 9:37 am

    Hi all,

    I have just settled on a second IP.  Now, I'm looking at having a Depreciation Schedule on this new IP done and also establish building/landlords insurance on it (cover note in place).

    On my current IP, I have some equity which I was considering using to pay for the Depreciation Schedule and the insurance.

    The question is:

    If I use equity available on the 1st IP to pay for the new (second) IP, will the ongoing interest on these costs be tax deductible?

    What of the actual cost of the depreciation schedule and the insurance?  Will this be tax deductible?

    Look forward to your responses.

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213
    July 7, 2009 - 2:13 am

    Interest on borrowings which are used for investment purposes should be deductible as are the actual costs.
    confirm with your accountant

    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

Viewing 2 posts - 1 through 2 (of 2 total)

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