In March 2021, the government announced significant (and unexpected) changes for the deductibility of interest on rental property loans.
What we need
- The loan summary from the bank – this will show the principal and interest paid during the year ended 31 March 2022.
- If you purchased a rental property and/or ‘converted’ your family home to a rental property, on or after 27 March 2021:
- Signed sale and purchase agreement
- Settlement statement from the solicitor
- A copy of the property’s code of compliance certificate if it was issued on or after 27 March 2020 – even if you are the second or subsequent property owner (your solicitor should have this)
Why we need it
The tax treatment of interest paid on the property loan now depends on the date the property was purchased, and whether it was a new build or not. The information you provide will make sure that the maximum permitted interest is claimed.