The other night I had a few beers and thought I'd apply for some shares in the Medibank IPO. So I logged into CBA and paid for the shares by Bpay from my offset account instead of a LOC. Can I repay my offset account from my LOC without muddying things? The amount is $30k and the LOC is with NAB if it makes any difference. It was only a few days ago so the interest component wouldn't be great.
Can I repay my offset from LOC? I bought Medibank shares from offset funds
- Thread starter nomadic
- Start date
Oops. Can't you cancel the transaction now?
No you can't because you have already purchased the shares. You cannot reimburse yourself.
Looks like you will need to sell them when they list then re-buy the same day using your LOC account. This should only cost you the trading fees and any CGT you may incur which in the long run may maybe cheaper than any loss of tax advantage you may gain by using borrowed funds to buy shares.
No. Non-deductible. You have applied for shares. they havent been issued. The issue is oversubscribed. For every 8-10 shares applied for you may get one. That is the deductible cost at best. From the issue date NOT the application date. Not what you applied for. You will eventually get a huge refund - No interest paid.
If you acquire for income the intrerst is deductible for the final allocation value not what you applied for. If you acquire for profit its a trivial capital cost from the issue date and not earlier.
Medibank shares are a dud worse than T3.
If you acquire for income the intrerst is deductible for the final allocation value not what you applied for. If you acquire for profit its a trivial capital cost from the issue date and not earlier.
Medibank shares are a dud worse than T3.
I dont agree, they're not bound by as much govt crap as Telstra is. Telstra is the biggest provider so doesnt have any room to grow and has crap financials. Medibank has pretty decent financials that'll get better with non-govt ownership and haven't infiltrated all states nor product market spaces yet.
kudos for great advice!
Dont forget to include Capital Gains Tax in the calcs.
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