Break fees - are they tax deductible ?

[L and P]

We currently have 2 loans fixed into higher interest rates. Not due out till December 2014 and May 2014. Are the fees to break these fixed loans tax deductible as I am seriously thinking about it.

We have an appointment first thing tomorrow with our bank manager about a different matter. I have emailed our accountant late today but would like to start working on some figures tonight if this could be a possibility.

Thank you in advance for any help.

 

[MRO]

Generally, yes but seek specific advice as you are already doing.

 

[L and P]

Thank you.

Just realised I should have used google
That's what happens when you are multi tasking - cooking dinner, helping with homework and trying to do business 'stuff' - never crossed my mind to google LOL

 

[Rolf Latham]

We currently have 2 loans fixed into higher interest rates. Not due out till December 2014 and May 2014. Are the fees to break these fixed loans tax deductible as I am seriously thinking about it.

if they are for investment use, then generally yes, and in the year they are incurred.


ta

rolf

 

[L and P]

Yes both investment properties.

I'm a bit cranky tonight. Phoned the banks help centre to enquire on exact costs to break so I know what we are dealing with tomorrow. Only to find out that I have been given totally the wrong dates from our manager of when these are due to change from fixed. I WAS correct with the dates I had recorded after all. So glad I called - I will be looking for some answers tomorrow that's for sure

Not to mention that the offset account isn't tied into the correct loan - and has been that way for 2 years ! My fault for not checking the statements closely enough. I'm still annoyed though.

 

[Terry_w]

Yes both investment properties.

I'm a bit cranky tonight. Phoned the banks help centre to enquire on exact costs to break so I know what we are dealing with tomorrow. Only to find out that I have been given totally the wrong dates from our manager of when these are due to change from fixed. I WAS correct with the dates I had recorded after all. So glad I called - I will be looking for some answers tomorrow that's for sure

Not to mention that the offset account isn't tied into the correct loan - and has been that way for 2 years ! My fault for not checking the statements closely enough. I'm still annoyed though.

make sure you request compensation for the offset muck up

 

[Rolf Latham]

Not to mention that the offset account isn't tied into the correct loan - and has been that way for 2 years ! My fault for not checking the statements closely enough. I'm still annoyed though.

STG or WBC is my guess

ta
rolf

 

[L and P]

Yes - WBC

Is this a common occurrence Rolf ?

 

[Rolf Latham]

Yes - WBC

Is this a common occurrence Rolf ?

NO its not a design fault...............it just happens more than it should with those 2 lenders.

ta
rolf

 

[Aaron_C]

Breaking a fixed rate loan should be tax deductible in the year it happens (if the loan was for investment purposes). Weigh up whether it is worth it to break.