Treatment of rate lock fees for tax purposes ?

[Archer]

Hi guys,

I recently fixed interest rates for 1 of my IP's and incurred rate lock fees as the rate was moving soon. I was wondering if anyone is aware if these can be fully claimed in the year incurred or do they have to be written off over 5 years like borrowing costs.

If they do have to be written off over a period of time is that linked to the period of the fixed term loan ? ie would you write off a $350 rate lock fee over 5 years even if the loan was only fixed for 4 years ?

Cheers,

Ben

 

[Rolf Latham]

Hiya

Id guess shed be a borrow cost, thus 5 years OR the term of the loan.

ta
rolf

 

[Archer]

Thanks Rolf

 

[greysuit]

Archer,

Agreed, five years or the life of the loan, whichever is less. For whatever it's worth, too, exit fees (should you refinance earlier) may be claimed in full upon payment.

Cheers.