Interest deduction got the dates wrong.

[DoobyNuts]

My June mortgage interest for my investment properties was paid on 2nd July. Is there any chance I can claim this for 2013/2014 tax year? I know I know I stuffed up.

My bank statement is showing 11 x monthly interest repayments for the 2013/14 tax year and I am in the highest income bracket and next year might not be so am wondering if there is anyway to claim it to get maximum tax benefit. It's about $4000 interest so it's a decent expense.

Cheers Somersoftians.

 

[Richard Feynman]

Similar boat here. I had 6 weeks of interest repayments go through (on automatic payment) in one hit (two weeks late - July 1st) instead of the first month being processed when it was due.

I'd have preferred the tax refund on that payment in my pocket this financial year. It's a bit.

I'm guessing nothing can be done though. They date of payment is the date of payment.

 

[Terry_w]

Expenses incurred on the date you pay them generally.

 

[DoobyNuts]

You added "generally". Does that mean there is a way around it? The interest was for the month of June not July. What if the bank made a mistake and charged the interest on the wrong date. Is the ATO that stringent?

 

[Terry_w]

You added "generally". Does that mean there is a way around it? The interest was for the month of June not July. What if the bank made a mistake and charged the interest on the wrong date. Is the ATO that stringent?

Not in your case I think// acrruals v cash basis.

 

[Paul@PFI]

My June mortgage interest for my investment properties was paid on 2nd July. Is there any chance I can claim this for 2013/2014 tax year? I know I know I stuffed up.

My bank statement is showing 11 x monthly interest repayments for the 2013/14 tax year and I am in the highest income bracket and next year might not be so am wondering if there is anyway to claim it to get maximum tax benefit. It's about $4000 interest so it's a decent expense.

Cheers Somersoftians.

Was the interest amount appearing as a debit on the account on 30 June or prior to 30 June ?? If so it is deductible. This is very normal for an IO loan. The cost is incurred when it is known and can be reliably determined as an indebtedness on the loan. This isnt about accrual v's cash taxpayers. It is about when the cost was incurred. In theory you can make zero repayments and the interest is deductible when charged.

Banks generally use a fixed date for charging intrest and despite the date the IO repaymnet may be swept from another account it remains that 12 x interest charges will occur within the period 1 July-30June. If you prepay a repaymnet it doesnt add to your deductions!!

Many taxpayers make the mistake of looking at loans and looking at what they "paid".(Item in the credit column) It is the interest charge incurred that is deductible (debits). Never what is paid. Otherwise taxpayers would be deducting their principal & intrest payments or extra repayts etc.

 

[DoobyNuts]

Thanks for the reply Paul.

Never thought about that but upon checking the debit and credit amounts are both on 2nd July.

Oh well.

 

[wategos]

Who cares if it?s a few days late, just claim it in the year you want.
The ATO won?t give a rats, even if they check, which they won?t.