Any tax experts shed some light on this for me?
I have three loans, (2 against PPOR and 1 against IP) as follows:-
MacQ - Loan 1 - 80% against PPOR - Purpose PPOR
MacQ - Loan 2 - $50k secured on PPOR - purpose IP1 - DEDUCTIBLE
ME Bank - Loan 3 - 95% IP, secured against IP. - DEDUCTIBLE
The IP has gone up in value enough to recycle the initial deposit. My plan was a new split loan against the IP to release $50k, that $50k to pay direct back to loan 2 which is secured against the PPOR but the purpose was for the IP. That would leave:-
MacQ - Loan 1 - Unchanged
MacQ - Loan 2 - PAID OUT, balance zero
ME Bank - Loan 3 - Unchanged - DEDUCTIBLE
ME Bank - New Loan 4 - $50k secured against IP, paid out original loan 2 - DEDUCTIBLE
Basically, I;d end up with the same loan amount only all security now against the IP that the loans originally purchased, maintaining deductibility.
Now, what has happened is this...
Loan 1 & 2 are with the same bank, Macquarie.. Loan 1 has an offset attached (that all our regular banking and wages etc are used for).
When the new loan was disbursed i was asked by ME Bank where it was to be paid to and I gave the account details for loan 2. I have double checked this and it is correct.
The loan was disbursed yesterday, but it has been paid into the offset account instead!!! This account has a completely difference account number but it is the account that we pay the interest to ME Bank from on the original loan 2.
So, I don't know if ME Bank have stuffed up and paid into the account they already had on file for interest payment debits, or if Macquarie have somehow stuffed up and put the received disbursement into the wrong account (even though they have different account numbers).
No one is available until Monday.
My question is, if I take the disbursement form the offset and pay off Loan 2 as intended, does that mean I've contaminated the funds and lost deductibility? I am able to trace the funds by way of statements, so it can be demonstrated to ATO the money trail but I'm not sure this is OK?
If not, and now of the banks have cocked up, then I'll have to pay the disbursement back to ME Bank and start again, making sure they pay out into the correct account number.
If I've lost deductibility it's going to cost me an extra $80 per month in tax. May not seem a lot, but it adds up over the life of a loan.
Cheers.
I have three loans, (2 against PPOR and 1 against IP) as follows:-
MacQ - Loan 1 - 80% against PPOR - Purpose PPOR
MacQ - Loan 2 - $50k secured on PPOR - purpose IP1 - DEDUCTIBLE
ME Bank - Loan 3 - 95% IP, secured against IP. - DEDUCTIBLE
The IP has gone up in value enough to recycle the initial deposit. My plan was a new split loan against the IP to release $50k, that $50k to pay direct back to loan 2 which is secured against the PPOR but the purpose was for the IP. That would leave:-
MacQ - Loan 1 - Unchanged
MacQ - Loan 2 - PAID OUT, balance zero
ME Bank - Loan 3 - Unchanged - DEDUCTIBLE
ME Bank - New Loan 4 - $50k secured against IP, paid out original loan 2 - DEDUCTIBLE
Basically, I;d end up with the same loan amount only all security now against the IP that the loans originally purchased, maintaining deductibility.
Now, what has happened is this...
Loan 1 & 2 are with the same bank, Macquarie.. Loan 1 has an offset attached (that all our regular banking and wages etc are used for).
When the new loan was disbursed i was asked by ME Bank where it was to be paid to and I gave the account details for loan 2. I have double checked this and it is correct.
The loan was disbursed yesterday, but it has been paid into the offset account instead!!! This account has a completely difference account number but it is the account that we pay the interest to ME Bank from on the original loan 2.
So, I don't know if ME Bank have stuffed up and paid into the account they already had on file for interest payment debits, or if Macquarie have somehow stuffed up and put the received disbursement into the wrong account (even though they have different account numbers).
No one is available until Monday.
My question is, if I take the disbursement form the offset and pay off Loan 2 as intended, does that mean I've contaminated the funds and lost deductibility? I am able to trace the funds by way of statements, so it can be demonstrated to ATO the money trail but I'm not sure this is OK?
If not, and now of the banks have cocked up, then I'll have to pay the disbursement back to ME Bank and start again, making sure they pay out into the correct account number.
If I've lost deductibility it's going to cost me an extra $80 per month in tax. May not seem a lot, but it adds up over the life of a loan.
Cheers.