All Topics / Finance / Interest repayments or interest charged tax deductible? Need clarification!

Viewing 7 posts - 1 through 7 (of 7 total)
  • Profile photo of harryandlloydharryandlloyd
    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

    Profile photo of TerrywTerryw
    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

    Profile photo of harryandlloydharryandlloyd
    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

    Profile photo of TerrywTerryw
    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

    Profile photo of Jamie MooreJamie 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]

    Profile photo of harryandlloydharryandlloyd
    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

    Profile photo of Jamie MooreJamie 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]

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

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