Hi guys.
Q1/ Have paid insurance on one of my I/P’s for this financial year already but received the renewal the other day. The policy commences from 5/7/2005 so if I pay it before 30/6, can I legally claim 2 lots of insurance payments in the one financial year?
Q2/ I have a mortgage over 2 I/P’s which I have in the past just split the interest in half when claiming for tax. If I release 1 of the properties out of the mortgage (due to capital growth), do I then just claim ALL the interest on the remaining property?
Thanx
Hi Maximus,
Q1/ Yes you can claim two lots of insurance in one financial year. The ATO allows you to claim the expense when you pay it so long as you are not prepaying years in advance
Q2/ I am not sure if I completely understand this question. Do you mean that the equity in one property is enough to support the loan & thus you are releasing the other property & it will be debt free? If this is the case & all the loan has been used for investment purposes, then you claim against only one property.
Hope that helps
Originally posted by JKM:Do you mean that the equity in one property is enough to support the loan & thus you are releasing the other property & it will be debt free?
Hope that helpsThanx JKM.
Re Q2, yep, thats exactly what I meant and you have answered both questions for me.
Thank you.
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