Watch the tax implications when refinancing investment loans
Property ObserverDecember 7, 2020
To offset interest paid on their investment mortgage against their taxes, property investors need to maintain a clear accounting link between the initial mortgage to acquire the property and the refinanced amount.
If investors refinance and include their homes and investment properties under one mortgage, the tax office might disallow their interest claims.
In all cases an investor should speak to an accountant or financial adviser beforere financing to ensure he or she is structuring the loan in the most tax-advantageous manner.
This article was taken from Property Observer's free eBook: 12 tips for refinancing your mortgage.