Partial year interest calculations

[S.T]

Hi guys, I turned my PPOR into an IP in Feb this year, whats the correct way to calulate interest? Days rented/Days in year x Interest paid for year?

so 130/365 x 22000?

or should I calculate partial days for Feburary's interest only? so say 15/29 x interest billed for Feb, then add the other monthly interest payments for the year.

 

[HotRod]

I think method #2.

 

[dan c]

Option 2 is correct. Partial interest for February, then your interest paid from March onwards.

 

[Alex P Keaton]

Hi guys, I turned my PPOR into an IP in Feb this year, whats the correct way to calulate interest? Days rented/Days in year x Interest paid for year?

so 130/365 x 22000?

or should I calculate partial days for Feburary's interest only? so say 15/29 x interest billed for Feb, then add the other monthly interest payments for the year.

I turned my PPOR into an IP in Feb this year too! Ill be watching this thread! .

I usually get around $4 K back for the full financial year (for my other IP) so I'm guessing I might get back around $2 k tax return for the 5 months

Can't wait for my tax return this year. Hoping to get around $6 k this time

 

[monalisa]

Agreed with others - option 2.

 

[Propertunity]

....or should I calculate partial days for Feburary's interest only? so say 15/29 x interest billed for Feb, then add the other monthly interest payments for the year.

^ ^ this one.

 

[S.T]

ta, thanks guys.