I have just refinanced to open a line of credit which is to be exclusively used for property investment. We had to leverage to 90% to get a satisfactory amount, thus incurring LMI. I mistakenly believed the LMI would all be placed on the LOC (tax deductible over 5 years as an investment expense) but a larger portion has been attached to our variable and fixed portions of our refinanced home mortgage.
Do any experts know if the ATO will accept that these 2 portions of LMI on our PPOR are purely as a result of investment activity and hence tax deductible? Or is this just the price of doing business in our situation? There was no reason to re-finance other than for investment purposes and we can prove that to the ATO if necessary.
Thanks in advance.
Do any experts know if the ATO will accept that these 2 portions of LMI on our PPOR are purely as a result of investment activity and hence tax deductible? Or is this just the price of doing business in our situation? There was no reason to re-finance other than for investment purposes and we can prove that to the ATO if necessary.
Thanks in advance.