New IP 09-10 tax queries

[brrmm]

Have just purchased an IP.
Contract signed in June 2010, settlement due July 2010.

Wanting to know, can we claim some of the interest on the loan in our 09-10 tax year?

Thanks for any tips.

 

[apj]

Hi Brrrmm,

Given settlement won't occur until 2010/11 I would have thought the loan won't be drawn until that year either in which case you won't be able to claim anything in the current year.

Cheers
Aaron

 

[marg4000]

Agree.

You won't be charged any interest until after settlement at which time the loan will be drawn down, which is in the next financial year.
Marg

 

[Mry]

If you are being charged interest on a loan for the purchase of the property, you can claim interest. There are valid reasons for interest deductions prior to settlement, such as a loan that was used to finance the deposit.