Hi All,
Thinking way ahead, hope the rules don't change.
Currently if you draw down for the purpose of re-investing in another IP, the Drawn Down loan amount from the IP will still be fully tax deductible.
Example:
2012
IP value = $300K (Loan $250K, Equity $50K)
2022
IP value = $600K (Loan $250K, Equity $350K)
Draw down $200K from your equity in IP, buy another IP for $200K, Keep for 12 months, then sell for $210K.
You end up with a way of drawing down while still being able to deduct the amount as an expense.
See rules from ATO: http://www.ato.gov.au/individuals/content.aspx?doc=/content/00113233.htm
My question is, do you think I have worked this out correctly?
Thinking way ahead, hope the rules don't change.
Currently if you draw down for the purpose of re-investing in another IP, the Drawn Down loan amount from the IP will still be fully tax deductible.
Example:
2012
IP value = $300K (Loan $250K, Equity $50K)
2022
IP value = $600K (Loan $250K, Equity $350K)
Draw down $200K from your equity in IP, buy another IP for $200K, Keep for 12 months, then sell for $210K.
You end up with a way of drawing down while still being able to deduct the amount as an expense.
See rules from ATO: http://www.ato.gov.au/individuals/content.aspx?doc=/content/00113233.htm
My question is, do you think I have worked this out correctly?