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From: M D
Hi Dale,
Can you please advise if it is ok to have offset account on an IP from the ATO's pt of view? I know there have been numerous feedbacks about how offset works on this forum but I think they mostly focused on offsets on PPORs....To be sure,I like to know if an offset on my IP will cause problems with ATO?
We are thinking of setting up an offset a/c against an IP and when we sell our home which has been paid off, the proceeds will be parked in this offset while we find another PPOR. My IP loan is 114000. Cash from the sale will be about 150000. This means the length of time the cash stays in the offset, no interest is charged for this IP for the duration. When we take out the cash, the interest will revert to normal. Does doing the above affect this IP's normal tax deductibility in any way? I am thinking , it should be fine. Can you please confirm? Thank you very much.
May
Hi Dale,
Can you please advise if it is ok to have offset account on an IP from the ATO's pt of view? I know there have been numerous feedbacks about how offset works on this forum but I think they mostly focused on offsets on PPORs....To be sure,I like to know if an offset on my IP will cause problems with ATO?
We are thinking of setting up an offset a/c against an IP and when we sell our home which has been paid off, the proceeds will be parked in this offset while we find another PPOR. My IP loan is 114000. Cash from the sale will be about 150000. This means the length of time the cash stays in the offset, no interest is charged for this IP for the duration. When we take out the cash, the interest will revert to normal. Does doing the above affect this IP's normal tax deductibility in any way? I am thinking , it should be fine. Can you please confirm? Thank you very much.
May
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