IP tax deductions

[The Porky]

Hi guys

I purchased my property a few years ago which has the original mortgage amount I originally borrowed. (ie. 250k).

Then a couple of years ago I undertook a 150k renovation utilising the equity I had in the home resulting in current mortgage increasing to 400k.

I have lived in the house a number of years but circumstances have now changed and I need to move.

I will be renting the property out however I just had a question in terms of the interest I pay which I can claim as a deduction.

Am I able to claim the interest on the 400k mortgage (ie, original purchase price plus renovation costs). Or is it a case that I can only claim interest for the original purchase price.

Any advice most appreciated.

Cheers

 

[Paul@PFI]

Good news. 100%.

The whole of the loan relates to the original cost and subsequent improvts for the property.
- When you move out consider its value for CGT
- Get a QS report !!
- Get a tax savvy property accountant. These sorts of questions can get immediate answers and will save you $$ if your strategies are known and understood.