Question
Suzie owns three investment properties in Adelaide. Rather than obtain a separate loan for all three properties, Suzie obtained a loan secured over her own
Suzie owns three investment properties in Adelaide. Rather than obtain a separate loan for all three properties, Suzie obtained a loan secured over her own home.
Suzie uses property managers to manage the investment properties on her behalf. The property managers charge an upfront letting fee equal to one week's rent and an ongoing management fee of $850 per annum.
Which of the following statements isTRUE?
Select one:
The interest on the loan is not deductible as it is secured over Susan's main residence.
The letting fees are not deductible as they are capital in nature and add to the cost base of the properties.
The ongoing management fees and letting fees are a deductible expense.
All of the above.
None of these
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started