I have an investiment property. There is interent-only loan setup for the property and also linked to an offset account.
The offset account is like my saving+transaction account, with lots of transactions in and out, such salary, payments, etc.
To make the calculation simpler, say if the interest charged (interent-only) of the loan is $3000 per month, but because there is some "saving" money in my offset account, the actual interest charged by the lender is $2000 per month.
In this case, what should be the "Interest deductions" for Rent in the tax return form?
Is it #3000x12month=$36000, or is it $2000x12month=$24000?
A bit confused what is tax deducitable loan interest in this scenario.
Your professional advice and clarification will be greatly appreciated.