Search results

All correct, though the advantage isn't as much as you think, especially with that break fee.

If your income is relatively stable (i.e. you're on about the same marginal rate every year), there is not much advantage of doing this, especially with the break fee. Prepaying interest increases your deductions for the first year only, but you have to fund that up front. If you expect your...

The point being that you get 10k back on tax, but lose out on 1.5k. What happens next year? That interest would have been deductible next year. If you don't repeat the interest prepayment, you have no interest to deduct. What you've basically done is brought the 10k tax benefit into this year...

Interest in advance only moves next year's deductions into the current year. If your other income is relatively stable year on year, there's not much advantage, especially as you have to fund the amount in the first place. I don't understand what you mean by you won't be able to claim for the...

Where is the interest in advance money coming from? Whats the cost of using it now instead of leaving it in a high interest account?