All Topics / Help Needed! / Converting PPOR to IP

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  • Profile photo of beaka84beaka84
    Participant
    @beaka84
    Join Date: 2010
    Post Count: 14
    July 14, 2010 - 6:58 am

    Hi all,

    I have a property which is my PPOR. I have lived in this property for 18 months. Just wondering if LMI and all other fees incurred when i opened my loan can now be used as a tax deduction once the property becomes an IP?

    Regards
    Beaka

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024
    July 14, 2010 - 11:57 am

    Answer is Yes.

    In saying this remember loan costs are deductible over 5 years or the term of the loan whichever is the shorter so not deductible in 1 go.

    They would proportionalised for the loan term but you would be able to claim the balance of the term once the property is available for rent.

    Stamp Duty and not related loan costs are added to the Capital Base and offset against future capital gains tax.

    Richard Taylor | Australia's leading private lender

    Profile photo of number 8number 8
    Participant
    @number-8
    Join Date: 2010
    Post Count: 333
    July 14, 2010 - 1:06 pm

    As Above, but include;

    Conveyancing / solicitor fees are added to the Cost Base as well.

    Registration of mortgage etc is a deductible loan cost over 5 years.

    http://www.birchcorp.com.au

    Profile photo of beaka84beaka84
    Participant
    @beaka84
    Join Date: 2010
    Post Count: 14
    July 14, 2010 - 11:58 pm

    Thanks heaps guys,

    much appreciated

Viewing 4 posts - 1 through 4 (of 4 total)

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