What can you claim when refinancing an investment property?
The good news is, when refinancing an investment property, the costs involved in setting up a loan, and exiting it, are generally tax deductible.
There are two main areas of tax deductions that can be claimed when you are refinancing your investment property;
However, it’s important to note that you may not receive the refund for these costs immediately. You’ll need to budget as this money could take a long time to be returned to you.
These borrowing costs can be claimed on tax, incrementally, over the first five years of property ownership. But if you sell or refinance the property within that time period, you should be able to claim the remaining tax deductions straight away .
As with all tax deductions, it is important to maintain records and documentation of all bank statements and receipts. Your bank will be able to provide you with a statement of costs, which outlines your refinancing fees for tax purposes.
In order to maximise your tax return, speak to a tax professional who can help you with any paperwork you may need to fill out .
If now’s the time to refinance, speak to an Aussie Broker who can help you find the right loan.