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mail_4_sk(Newbie)Newbie
27 Aug 2024

The excel sheet available on ATO website for ''Rental property deductible borrowing expenses calculator" has below sections for borrowing expenses.

  • Loan establishment fees
  • Lender’s mortgage insurance (Insurance taken out by the lender and billed to you)
  • Stamp duty charged on mortgage registration (passed on by your lender)
  • Title search fees (charged by your lender)
  • Costs to prepare and file mortgage documents (including solicitors’ fees)
  • Mortgage broker fees
  • Fees for a valuation required for a loan approval

I have refinanced my investment property and the new lender has charged below fees.

  • Mortgage registration fee
  • Discharge of your mortgage

Which section of ''Rental property deductible borrowing expenses calculator" the above fees belongs?



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334 views
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Taxduck(Taxicorn)Taxicorn
27 Aug 2024

I'm assuming if you refinance you take out a new loan which pays out the old loan. If that is the case you claim the balance of the borrowing costs on the old loan including the mortgage discharge fee on your next tax return.

Any new borrowing costs, such as the mortgage registration fee, are now claimed over 5 years on a new calculator. See borrowing costs

Rental expenses you claim over several years | Australian Taxation Office (ato.gov.au)

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Most helpful reply

Taxduck(Taxicorn)Taxicorn
27 Aug 2024

I'm assuming if you refinance you take out a new loan which pays out the old loan. If that is the case you claim the balance of the borrowing costs on the old loan including the mortgage discharge fee on your next tax return.

Any new borrowing costs, such as the mortgage registration fee, are now claimed over 5 years on a new calculator. See borrowing costs

Rental expenses you claim over several years | Australian Taxation Office (ato.gov.au)

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Refinance expenses for investment property | ATO Community