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From: J D
Hi Guys,
I am buying in Qld (using io loan) and my purchase costs include stamp duty, conveyance costs, building/pest inspections, bank loan costs etc, these are 'capital' costs and not deductible against rental income (can only used to calc capital gain on sale I believe).
My question is: I am borrowing 105% of IP purchase price to cover these 'capital' purchasing costs as above; am I allowed to claim the interest on the borrowed component for purchase costs as a tax deduction each year?
ie. IP cost $280k, borrow $294k, is interest deductible on 280k or 290k?
thanx in advance
JD
Hi Guys,
I am buying in Qld (using io loan) and my purchase costs include stamp duty, conveyance costs, building/pest inspections, bank loan costs etc, these are 'capital' costs and not deductible against rental income (can only used to calc capital gain on sale I believe).
My question is: I am borrowing 105% of IP purchase price to cover these 'capital' purchasing costs as above; am I allowed to claim the interest on the borrowed component for purchase costs as a tax deduction each year?
ie. IP cost $280k, borrow $294k, is interest deductible on 280k or 290k?
thanx in advance
JD
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