Interest expense

► If you’re claiming a deduction for interest expense on a paid basis, make all necessary payments by31 December.

► Consider converting non-deductible interest into deductible interest by using available cash to pay down personal loans and then borrowing for investment or business purposes.

► Use your excess funds to pay down personal debt, such as mortgages or credit card balances, before investment-related debt.

► To reduce the cost of non-deductible debt, pay off your most expensive debt first. Consider refinancing expensive debt like credit cards with a less expensive consumer loan.