prepaying interest home loan

[lolipss]

Hi Guys,

I have the following scenario:

I am thinking to do prepaying interest on my home loan for period 2012 - 2013 next year.

If i did the prepaying interest on my investment home loan before 1 july 2012, and later in the future for example in december 2012 i move into my investment house and turn it into PPOR.

Can i still claim full on the prepaying interest that I paid for july 1 2012 - 30 june 2013 on my tax return 2011 - 2012?

Have anyone ever done this?

 

[Rolf Latham]

Hi

I think you would have to pro rata the payment to the day when the use changes

ta
rolf

 

[lolipss]

Hi

I think you would have to pro rata the payment to the day when the use changes

ta
rolf

Hi Rolf,

Yeah that's what i though as well, but you already claim it in the deduction on 2011-2012 tax return.

So how do you able to pro rata it if it already processed in the past and in the future the condition change and your IP become PPOR?

 

[Rolf Latham]

I guess u have to lodge a variation to ur return.

Not my area of expertise Im afraid

ta
rolf

 

[BV]

Hi Guys,

I have the following scenario:

I am thinking to do prepaying interest on my home loan for period 2012 - 2013 next year.

If i did the prepaying interest on my investment home loan before 1 july 2012, and later in the future for example in december 2012 i move into my investment house and turn it into PPOR.

Can i still claim full on the prepaying interest that I paid for july 1 2012 - 30 june 2013 on my tax return 2011 - 2012?

Have anyone ever done this?

In my opinion you would have to submit a variation and adjust the claimed interest

 

[ozk]

BV is correct. However it is not a variation you lodge with the ATO, it is an amendment.

Write to the ATO and ask them to amend your tax return as per your instructions. It is the same thing you do if you find you have some undeclared income once your tax return has been submitted for the current or previous financial years.

 

[INVSTOR]

I'd assume you'd have to pay ATO interest also if you didn't advise them straight away.