section 44 wrote:vkumar2705 wrote:is the proportional remortgage interest for 105000 on property B an allowable deduction against the rental income obtained from property A?
No. While it does not matter what property the loan is secured on, the purpose of the borrowing is important. The purposes of the borrowing was to acquire property B and not to acquire, or refinance, property A.
It's somewhat bizarre to be replying in a thread which I answered nearly 6 years ago.
However, I agree with section44, that the interest for Property B's mortgage is not allowable.
