I Bought an investment property for 800K. 700K was loan and 100K was money drawn from our owner occupied home loan. Investment property is fully rented. Can i claim interest on the whole 800K for my investment expenses ?
Hi @VandTly
If you take out a loan to purchase a rental property, you can claim the interest charged on that loan, or a portion of the interest, as a deduction. However, the property must be rented, or genuinely available for rental, in the income year for which you claim a deduction.
You cannot claim a deduction for interest expenses you incur if:
If the expenses were incurred partly for a private purpose, you must apportion the expense accordingly. For more information, see Investment loan used for private purpose.
While the property is rented, or genuinely available for rent, you may also claim interest charged on loans taken out:
For more information see Interest on loans.
Alternatively, you may wish to get tailored technical advice. We’ll then be able to discuss your circumstance in more detail and provide you with a written response.
Hi @VandTly
If you take out a loan to purchase a rental property, you can claim the interest charged on that loan, or a portion of the interest, as a deduction. However, the property must be rented, or genuinely available for rental, in the income year for which you claim a deduction.
You cannot claim a deduction for interest expenses you incur if:
If the expenses were incurred partly for a private purpose, you must apportion the expense accordingly. For more information, see Investment loan used for private purpose.
While the property is rented, or genuinely available for rent, you may also claim interest charged on loans taken out:
For more information see Interest on loans.
Alternatively, you may wish to get tailored technical advice. We’ll then be able to discuss your circumstance in more detail and provide you with a written response.
15 Apr 2026 · 4 min read time
15 Apr 2026 · 8 min read time
552 views
1 replies