Hello Tax Community – I wish to prepay my investment property’s 2024/2025 interest in this tax year (2023/2024) but my bank does not have a formal process for prepayment. Is a letter stating the interest amount sufficient to fulfil the ATO requirement if I pay the amount into the mortgage account (rather than the redraw)
Is a letter stating the interest amount sufficient to fulfil the ATO requirement if I pay the amount into the mortgage account (rather than the redraw)
Not unless the 12 months of interest is actually charged to the loan account before 30 June.
Is a letter stating the interest amount sufficient to fulfil the ATO requirement if I pay the amount into the mortgage account (rather than the redraw)
Not unless the 12 months of interest is actually charged to the loan account before 30 June.
No. If you pay an amount into your account, it's simply a repayment of principal. You need to find a way to pay the bank the interest, e.g. the bank needs to send you an invoice, @Pete-E .
22 Apr 2024 · 6 min read time
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