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Salary sacrifice - Mortgage payment investment property

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If as an employee, you salary sacrifice your rental property mortgage payment, can you claim the loan interest in your personal tax return. What is benefit of salary sacrificing mortgage payment

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Devotee

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If you salary sacrifice the payments you are not entitled to claim a deduction for the interest.  If your employer is paying/reimbursing any of the principal component that part of the payment would be subject to FBT.

 

The only advantage of salary sacrificing would be that your income for some income tests relating to government benefits and obligations might be lower than it would be if you did not salary sacrifice the amount.

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Most helpful response

Devotee

Replies 0

If you salary sacrifice the payments you are not entitled to claim a deduction for the interest.  If your employer is paying/reimbursing any of the principal component that part of the payment would be subject to FBT.

 

The only advantage of salary sacrificing would be that your income for some income tests relating to government benefits and obligations might be lower than it would be if you did not salary sacrifice the amount.