SearchRental deductions
Rajni asks:
(updated on Wednesday, August 28th 2019)
This is the first year I am getting home rental income. So while filling my return, I have lots of questions. First and foremost, I am paying regular payments to my bank against my house mortgage. So please advise: what goes in the column interest - is it the whole payments that am paying to the bank periodically? Also, I am currently living in a rental property because the house has been burgled three times and became a risk so I have an organisation renting it out for me.
Our Experts Answer:
Firstly, any ability to claim deductions ended when the property was no longer available for rental as there is no nexus with rental income if you are living in the property. If it was rented, or for the period it was rented, interest on any money borrowed to buy the rental property will be deductible. If your loan repayments are principal and interest you must separate the interest from the principal and claim only the interest. If the loan is interest only the payments are all interest and can be claimed. But as I say, only for the period where the property was rented. Not when you moved in.
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