Recent content by bigdave764

Thanks Terry - I think it's option A. We increased our PPOR loan specifically to have money to push into the IP. Appreciate you taking the time :-) And to confirm that we claim the relevant portion apportioned in equal amounts over 5 years?

So can I just claim the fraction of LMI that relates to the increase in the loan?

And a second question is whether I just claim exactly 1/5 of the LMI, or if I have to adjust for the number of days we owned the IP (e.g. we owned it for about 3/4 of the tax year - so do I need to reduce for this)?

We had a loan on our PPOR which was less than 80%. We extended this loan to 90% with the specific purpose of funding the deposit for our IP and so incurred around $18,600 of LMI costs (and as both mortgages are with Bankwest, the LMI was incurred on the very same day as the settlement of our IP...

Thanks for the thorough replies - sounds like it is in our case (as first time buyers in Australia) it better just to bank the FHO benefits and not bother trying to declare it as an IP as the tax saved won't be much more.

We recently bought a block of land near Sydney, on which are going to build a project home once the DA is in place. We will obviously be paying a lot of interest on the loan from now until when the house is completed. I understand that it is possible to tax deduct the interest on the loan if...