Maximising your tax losses on investment property
Interest on a loan is tax deductible, if that loan has been used to purchase a rental property or it is has been used to pay for renovations or upkeep expenses of a rental property. The best way to claim the most interest possible, is to not only borrow to purchase the rental property, but also to borrow to pay for any renovations and expenses on the rental property. To do this, at the same time as you arrange your term loan for the rental property, you should also arrange for a revolving overdraft facility which will be used to pay for any rental expenses. This way you’ll never have to put your hand in your pocket to fund the rental property and you’ll be getting the maximum interest claim possible.