Claiming LMI and other borrowing costs after converting PPOR to IP

This thread is archived and the information may not be up-to-date. You can't reply to this thread.

(Newbie)Newbie

16 Jan 2025

I bought a home as my PPOR on 01 Jul 22, and paid $15,000 of LMI and other borrowing costs at time of purchase. On 01 Jul 24, I moved out and it became an investment property.

I understand how borrowing costs are deductible over 5-years, but interested to understand how this specifically works when converting from PPOR to IP.

My thinking is that the following breakdown makes sense, but want to confirm:

FY22-23 & FY23-24: $3,000 apportioned but not deductible as no income produced

FY24-25, FY25-26 & FY26-27: $3,000 apportioned and deductible as income is produced (assuming still available for rent).

0 likes

156 views