I just turned my PPOR to IP today. I have a offset account linked to my mortgage. I use professional package which is interest only on variable rate.
The interest on the loan should be tax deductible now. I have all my income deposit to the offset account at the moment. I also withdraw money from offset account for daily expenses. Would it be a problem to claim interest as cost of IP if I keep doing that way?
In order to make the interest deductible, do I have to stop withdrawing money from offset account? If the answer is yes, I have to deposit my salary to another account. I don't know if it is worthwhile because I get higher interest without salary in offset. Or I deposit my salary to another account and reserve some money for daily expenses, then transfer the rest of money to offset.
Any suggestion would be highly appreciated. Thanks.
The interest on the loan should be tax deductible now. I have all my income deposit to the offset account at the moment. I also withdraw money from offset account for daily expenses. Would it be a problem to claim interest as cost of IP if I keep doing that way?
In order to make the interest deductible, do I have to stop withdrawing money from offset account? If the answer is yes, I have to deposit my salary to another account. I don't know if it is worthwhile because I get higher interest without salary in offset. Or I deposit my salary to another account and reserve some money for daily expenses, then transfer the rest of money to offset.
Any suggestion would be highly appreciated. Thanks.