I made redraws on then Owner Occupied and now it is an investment property.
Property purchased - 2016
Original loan amount- 420000 (current balance 350000)
Redraws made until June 2022 - 130000 (current balance 100000)
It was owner occupied till Oct 2023
I'm looking to refinance now for 450000 with no cash out.
Do I claim tax deductions for total current balance of 450000 or only 350000 from the original loan?
Do I claim tax deductions for total current balance of 450000 or only 350000 from the original loan?
Certainly not $ 450 K, and maybe not $ 350 K either.
You need to apply the method set out in TR 2000/2 in order to determine the deductible part of the loan balance - and therefore the % of interest that is deductible.
Do I claim tax deductions for total current balance of 450000 or only 350000 from the original loan?
Certainly not $ 450 K, and maybe not $ 350 K either.
You need to apply the method set out in TR 2000/2 in order to determine the deductible part of the loan balance - and therefore the % of interest that is deductible.
https://www.ato.gov.au/law/view/pdf/pbr/tr2000-002.pdf
I agree with @Bruce4Tax. He frequently gives good answer/s.
You really should have a meaningful discussion with an experienced accountant.
Ask your friends and colleagues to recommended a Chartered Accountant, CPA, or Chartered Tax Adviser.
S/he can describe and discuss the many relevant taxing issues, and help you conclude good outcome/s.
Don't forget that any "free advice" you receive in this forum, is worth what you paid for it, ie nil (GST included).
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