Hi all,
Yet another redraw/offset/tax question.
When I purchased my first IP late last year I decided just to take a basic loan product with redraw, which I have since been paying extra funds into. I would now like to setup an offset account and direct the extra funds there instead. I know it would have been better to do this initially but...
If I redraw my additional funds from the current loan agreement and put it straight into the offset account for the new loan agreement will I then have any tax issues claiming all the interest? I'm not redrawing to use it for personal expenses, but I'm not sure if just putting it into an offset account counts as an investment purpose.
The extra funds are ~10% of the loan, perhaps if I change to an offset now I could only claim 90% of the interest as a deduction. I probably need to visit the accountant but would appreciate any thoughts.
Cheers
Yet another redraw/offset/tax question.
When I purchased my first IP late last year I decided just to take a basic loan product with redraw, which I have since been paying extra funds into. I would now like to setup an offset account and direct the extra funds there instead. I know it would have been better to do this initially but...
If I redraw my additional funds from the current loan agreement and put it straight into the offset account for the new loan agreement will I then have any tax issues claiming all the interest? I'm not redrawing to use it for personal expenses, but I'm not sure if just putting it into an offset account counts as an investment purpose.
The extra funds are ~10% of the loan, perhaps if I change to an offset now I could only claim 90% of the interest as a deduction. I probably need to visit the accountant but would appreciate any thoughts.
Cheers