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This new Tax Draft TD 2011/D8 may cost many PIs dearly, once it becomes a tax ruling. Generally, how long a tax draft will become a tax ruling ? and will it affects the previous relevant private tax ruling ?

Thanks Terry for all the links & info :) Could you repost the last 4 links for private ruling please, its error file not found. Regards.

Thank You Dean2012ad., I will look at the private ruling. I think it will apply to Stinadaze as well as it looks like similar scenario. Also, after long read at Domjan's case (Terryw): http://www.austlii.edu.au/au/cases/c.../2004/815.html It looks like the set up is ok, as long as it is...

Thanks Terry, I was googling the Domjan case and got this : "...... A recent AAT case decided that if loan funds are intermingled with other funds before being used for income producing purposes they are no longer considered to have their source in the loan. Interest is not deductible on a...

Yes, this $40K is the only fund available for this IP offset acc and no other added deposit (pure and no contamination). This fund will be drawn down to $0 for IP expenses & other business expenses, (not related to IP). However, in future, this IP offset may get extra fund through IP loan...

I think LOC or draw down from offset acc is the way how to get the funding, but the deductibility is based on purpose test, if the fund is used for expenses on income generating activities then it will be deductible, ..... but I may be wrong. The other question : is the interest accrued also...

The original amount before refinancing was $240K

Yes, me too.

Sorry Terry, maybe I misunderstand some of the jargons. Initially, after refinancing, the IP loan = $280K, with the IP offset = $40K (the interest cost is calculated on the $240K loan balance). Then all the $40K in the IP offset acc spent on IP & business expenses (income generating...

Thank You Terry. Yes, you are correct, says at the beginning of FY this $40K is not tax-deductible, but once it is spent (all of it) on IP expenses (Mortgage interest, council, insurance, water & sewerage service, land tax, repair, etc) and other business expenses then at the end of FY it...

Hi all :). I have a question regarding interest tax deductibility, your help/advice/opinion will be highly appreciated. Apology, if a similar question had been raised before. Illustration: 1. PPOR loan acc linked with its PPOR offset acc. 2. IP loan acc linked with IP offset acc and...