Search results

Fair enough. Initially I thought it might be a cost effective way to pay off non-deductable debt and increase deductable. But yea, even if i could claim the borrowings for 5 years whilst the cashbond pays out, once the 5 years is up the borrwings wouldnt be deductable as the investment would...

Umm, nearly. Sorry, I just really want to understand this. Disregarding what you use the cashbond income for. Is a Cashbond an investment that the ATO would say, "yes, this is an investment". If so, borrowings to buy the cashbond would be tax deductable? Just like borrowings to buy an IP...

Hi Rixter, Correct me if im wrong, but i thought it was the purpose of the loan has to be for income producing purposes not the cashbond? I assume the cashbond is deemed an investment by the ATO and therefore interest on borrowed funds to buy one would be deductable. I dont think ive...

disregard, my head was very heavy at the time of posting before :o . For some reason i forgot, i wouldnt be able to claim the LOC interest as tax deductable once the cashbond has been completely paid out. So no point in my circumstances. Thanks all :rolleyes: Damon

Yea, I may well be better doing that, and until I read about the cashbonds I was set to gear into some shares. (have them picked out all ready to roll :D) I guess my only concern is the difference is in the risk you take on the investment. Sure, I'd be happier to invest in the funds you...

Great thread, I know what cashbonds are now. One question tho, If I were trying to legitimately shift non deductable debt to deductable would the following be fast and cost effective? Take out $100K LOC to purchase 5 year $100K cashbond. LOC interest, say, 7% and Cashbond 5%. Use...