Is Annual Loan Fee tax deductible?

[simonksl26]

One quick question. Is the annual loan fee charge by the banks for a mortgage tax deductible? Is it considering borrowing cost?

 

[Aaron_C]

yes as long as the mortgage is for investment purposes.

 

[Mry]

If the annual loan fee is incurred against a loan which is used to fund an income producing asset, it is 100% deductible when incurred.

It is not considered a borrowing cost to be written off over five years because it is one of those "ongoing" costs attached to keeping your loan going.

 

[geoffw]

What happens when there's a single loan fee with two loans- one for PPOR and one for IP?

 

[Rolf Latham]

What happens when there's a single loan fee with two loans- one for PPOR and one for IP?

allocate proportionately ?

ta
rolf

 

[wobbycarly]

What happens when there's a single loan fee with two loans- one for PPOR and one for IP?

"I only pay the package fee because of the IP loan(s), so I will claim 100%"

 

[Magnum9]

"I only pay the package fee because of the IP loan(s), so I will claim 100%"

If you had been on that package for years before buying an IP that could be disputed though right?

 

[wobbycarly]

If you had been on that package for years before buying an IP that could be disputed though right?

Possibly. We weren't.