From: Laurie Shaw
Dale
Do you mind please confirming advice I received from my accountant?
I originally mooted the issue of prepaying interest a little while back as you may recall.
Further to this, if the bank advances me the funds for this purpose on top of the original loan amount
(comprised of purchase price +costs),is this amount also deductible or does the ATO view borrowing interest dimly?
To illustrate the example:
Purchase price: $410k
Borrowings: $450k
- comprised of $15k costs
+ $25k to cover the first
years interest
Loan is IO for 1 year - with discount for prepayment
Very much appreciate your response and indeed your responses to all posts have been informative and helpful
Regards
Laurie
Dale
Do you mind please confirming advice I received from my accountant?
I originally mooted the issue of prepaying interest a little while back as you may recall.
Further to this, if the bank advances me the funds for this purpose on top of the original loan amount
(comprised of purchase price +costs),is this amount also deductible or does the ATO view borrowing interest dimly?
To illustrate the example:
Purchase price: $410k
Borrowings: $450k
- comprised of $15k costs
+ $25k to cover the first
years interest
Loan is IO for 1 year - with discount for prepayment
Very much appreciate your response and indeed your responses to all posts have been informative and helpful
Regards
Laurie
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