Capitalised Interest - Deductible ?

[LearningMan]

Question for the 'gurus' - if I choose to capitalise interest on a Margin Loan for a particular year ... is it deductible that same year ?

My thinking is that it should be since the lender still charged the interest. I am just choosing not to pay it.

Am I correct ? :confused:

[talbashan]

http://www.somersoft.com/forums/showthread.php?t=25354

not as simple as you think.. :)

tal

[twodogs]

Investment interest is deductable in the financial year in which you paid it. Paid means either EFT, bank deposit or debited to the loan account (ie capitalised) with some sort of receipt or statement date to prove it. Doesn't matter paid in advance (by arrangement of course), in arrears, one month or one year.

As for deducting pre-paid and capitalised interest, well that thread went around and around in circles on InvestED didn't it.

[LearningMan]

Investment interest is deductable in the financial year in which you paid it. Paid means either EFT, bank deposit or debited to the loan account (ie capitalised) with some sort of receipt or statement date to prove it. Doesn't matter paid in advance (by arrangement of course), in arrears, one month or one year.

As for deducting pre-paid and capitalised interest, well that thread went around and around in circles on InvestED didn't it.

Awesome ! Yes - thread went around in lots of circles on InvestED. That's why I thought I would ask here and see if I could tap into a different group. Remember that unless you are a member of InvestED you cannot post. In Somersoft EVERYONE can post !

Thanks again for your response !