Hi,
Just a quick heads up. Some will know this but many probably won't (I didn't)
When reading somewhere about LMI, it was mentioned that it was tax deductible on an investment property. My ears immediately pricked up as I know my tax agent never mentioned this in past years.
I googled this and found a bit more anecdotal information but nothing concrete. As I was going to do my tax I thought i'd check with them. Was told that it wasn't claimable til the property was sold. Not convinced but not having the evidence to correct I let it slide.
In the end I found this on the ATO website....
You can claim all of the following:
stamp duty charged on the mortgage
loan establishment fees
title search fees charged by your lender
costs for preparing and filing mortgage documents
mortgage broker fees
fees for a valuation required for loan approval
lender's mortgage insurance, which is insurance taken out by the lender and billed to you.
LMI is claimable over 5 years or less if loan term is shorter.
LINK AS FOLLOWS:
http://www.ato.gov.au/individuals/content.asp?doc=/content/00113245.htm
End result.
- Will be having an interesting conversation with my Tax Agent (major chain).
- Will not be using them again after they backdate my returns.
Might have to investigate using a proper accountant. My return is just simple Resi IP stuff (at least I thought) No trusts, SMSF or company.
I thought I would post my experience as it wasn't a one off with a particular person... it was over multiple years/tax agents/properties and no one picked this up.
Comments/Opinions/Similar Stories?
Joe
Just saw this post! I bought my Investment 07 and have never ever been told this depsite having a one on one personal accountant! What the!! Guess i will give Andrew a call!!
