Hello All
Let me quickly summarise my situation.
Oct 2021: I paid a 10% deposit to book an investment property in Melbourne (House & Land package).
I continued to pay interest on the mortgage as well as my deposit (via equity loan on my PPOR).
Apr 2023: The property is ready and I rented it out in May 2023.
Question: Can I deduct the interest paid from Oct 2021 till date from my taxable income when filing taxes for FY23?
Please advise.
Thanks
P
Hi @Paul.2,
I've done some digging and it looks like you can claim interest during the construction phase of your investment property. Check out our most helpful response from our technical team about Claiming Construction Loan Interest during Construction.
You can't claim any interest deductions for any investment property between Oct 2021 to March 2023 while it was in construction phase as it did not exist and could not be available for rent to produce income.
The property needs to be rented or genuinely available for rent in the income year you're wanting to claim a deduction for the interest expenses.
This means that after the completion of the house, and if available to rent April 2023 you can then claim interest expenses incurred after that date in your FY2023 tax return.
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