Timeline for To opt for interest only home loan and save for next property down payment or keep paying P&I to reduce debt AND borrow more for next property
Current License: CC BY-SA 4.0
11 events
| when toggle format | what | by | license | comment | |
|---|---|---|---|---|---|
| Jan 4, 2020 at 0:59 | comment | added | RonJohn | @Victor hmm. I confused the rules for "investment property" with those of "second home". Note though, that the US does have both CG exclusion for your primary residence and mortgage interest deduction. | |
| Jan 4, 2020 at 0:52 | comment | added | Victor | @RonJohn - so you are saying that in the US you cannot claim a tax deduction for the interest incurred for an investment property? I find that hard to believe since it is earning money and you should be able to claim any expenses incurred in earning that income against it. The reason you cannot claim a deduction in Australia for the interest against your main residence is because when you sell your main residence you get an exemption from paying any capital gains (which is not the case in the US). | |
| Jan 3, 2020 at 22:41 | comment | added | RonJohn | @Victor that's the exact opposite of how it works in the US. :) | |
| Jan 3, 2020 at 21:24 | comment | added | Victor | @RonJohn - as I wrote in my answer, in Australia there is a tax deduction for the mortgage interest on the investment property but not on the mortgage interest on your main residence. The basic rule is, if you are not earning (or attempting to earn) an income from the property, then the interest and other expenses are not tax-deductible. | |
| Jan 3, 2020 at 13:16 | comment | added | RonJohn | @Victor I don't know why I wrote "UK". Is there a mortgage interest tax deduction in Aus? | |
| Jan 3, 2020 at 9:21 | comment | added | Victor | @RonJohn - I don't know I am in Australia! | |
| Jan 3, 2020 at 2:59 | vote | accept | victor | ||
| Jan 3, 2020 at 2:59 | comment | added | victor | @Victor, "you are better off paying Interest Only on the investment property so that you can save as much as possible for your main residence" this is what i have been thinking.. thank you. | |
| Jan 3, 2020 at 2:53 | vote | accept | victor | ||
| Jan 3, 2020 at 2:53 | |||||
| Jan 3, 2020 at 2:43 | comment | added | RonJohn | Is there a mortgage interest tax deduction in the UK? | |
| Jan 3, 2020 at 2:28 | history | answered | Victor | CC BY-SA 4.0 |