Im thinking of renting out my home and have a question regarding the reclaiming of mortgage interest on the rental, example below.
Lets say i have a loan and the mortgage interest is $20,000p/a
how does that 20k effect the taxable deduction at the end of the year? is it deducted from my taxable income so it reduces my income by 20k and i only see the percentage back from that reduction of income, or can i claim the whole 20k back as a refund effectively? Or is there another way it works?
What ever the answer is to that question, I'm imaging all other related deductions like rates, insurance etc would be calculated the same way?
I'm trying to work out if its worth renting the property out, in terms of deductions made on the loan
Any guidance would be great
thx
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