Claiming interest on home loan?

"Schemes that are promoted as "mortgage management plans" are promising to help home owners repay their home loan sooner and claim tax deductions to which they are not entitled, the Tax Office has warned.

Tax commissioner Michael D'Ascenzo said the arrangements are essentially about people refinancing their home loan and establishing what what appears to be an investment loan to fund the purchases of shares in a bogus company.

The Tax office is contacting more that 140 people involved in the schemes." (source "Tax Practice" - Autumn 2010 ATMA)

The current scheme involving claiming deductions for home loan on private residences is not new. Tax law is quite clear on interest deductibility and home loans on the principle place of residence. For further information on taxation and investment properties, here is a link to an eBook on this topic:

==>Taxation and Investment Properties in Australia Explained

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