It would be nice to be able to indicate on Loans or Mortgages if the interest paid is tax-deductible when it is a part of a rental property or business. Thanks!
+1, tax treatment is the same in Ireland
Same in Denmark!
Would love to see that option to set the ‘tax-deductible’ flag for certain expenses (i.e. a new debt). Would be super useful for Australia. Thanks Kyle!
This would also be useful for marking loan interest as tax-exempt for things like margin loans or securities-backed lending that is used to fund investments.
Agreed. Most countries deem interest against loans relating to investments as tax deductible so this seems common sense. There is a workaround using the expense section, however, it cannot link to a loan so it does not assist with amortisation on the balance sheet.
+1. Debt Recycling is a great investment strategy in Aus and differs slightly from “Borrow to Invest” (which is also a tax deductible loan).
+1 for making the ability to turn on tax deductibility for the interest portion of any mortgage and any debt in general (lines of credit, margin loans, etc.). All deductible at your marginal rate (and against person income) in Canada.
When implemented, Deductible amount must be the actual interest paid after offset account balance reduces the loan amount.
+1, it would also be super helpful to cap deduction either as a % or fixed amount of the interest.
To be clear – Making Mortgage Interest Tax Deductible on Rental Property is already the default behavior.
That is – Mortgage Interest for properties tagged as Generating Rental Income will get a deduction for their interest when calculating Net Rental Income –> this is what is added to your Taxable Income, therefore mortgage interest has already been subtracted. If you choose to uncheck “Estimate my Rental Property Deductions,” then that’s true, you would lose this automatic behavior.
So I think the request can be more definitively stated as: allow any debt or mortgage interest to be tax-deductible.
Just to complicate things, in New Zealand, depending on the government of the day, only a % of the interest on the mortgage is deductible, but other expenses like insurance or local taxes (property rates) are 100% deductible. So ideally the feature could be enriched with a % of mortgage interest deductibility OR more advanced % set at each type of expense.. that way country variabilities could also be covered per Prashanths request. Also agree with Matt’s comment.