Claiming all YTD interest or only rented part?

[Toon]

If I've had a construction loan for investment purposes, but the IP will only finished in time to be rented out for the last six weeks of this financial year, can I claim all the YTD interest because the loan is specifically for investment purposes, or can I only claim the interest paid once I get tennants in there?

Cheers

Toon

 

[buzzlightyear]

The purpose of the funds being used is the key point to its deductibility. Taking on face value what you have written, if the funds have been drawn done to build an IP, all of the interest paid in that period would be deductible (for the same period), not just when the property was available for rent or when it was rented.

 

[Toon]

Thanks Buzz, that's a big relief