Borrowing Costs on Investment Property and Shares

If you borrow for an investment property or shares, or if you refinance a loan, you may be entitled to claim the costs of borrowing as an expense (e.g. mortgage insurance).

Costs of borrowing are to be written off over the shorter of 5 years OR the term of the loan.

Borrowing costs under $100 maybe claimed in the year it is incurred.

Generally, when you refinance, you would be able to write off any remaining borrowing costs on the old loan, as well as start deducting any new borrowing costs on the new loan.

Call us on 1300 135 918 for more information on maximising deductions - Allegiance Accounting, Sydney Chartered Accountants.

http://www.AllegianceAccounting.com.au

This is general information only and should not be used as advice. You should seek advice before acting on any information.