Loan tangles

[want2bewealthy]

So I purchased a PPR, it settles today and I was able to get my stamp duty refunded or 'paid' by revenue, I wasnt aware this was even available until a few days ago so after I paid settlement costs to the conveyancers trust account, we were able to put an urgent request through to stamps and it just came back in time approved so thats great news,

So now Ive actually capitalised interest funds from my topped up loan, not unlike a LOC secured against another property of mine,

Id 'like' to capitalise the interest on that loan like I intended to do and keep the stamp duty funds for another property or to put my pool in, is this legal? Ive already taken the funds out for that purpose and paid it to the trust account, I will be reimbursed around 90% of those funds after settlement.

NOTE, the property is a rental for the next 11 months until I move in and is currently tenanted until that time, not sure if Im best off paying the funds back into the loan but then the ATO see it as the loan being repaid.

 

[Carl]

Hi W2BW,

When you talk about stamp duty being paid by revenue, is this because the place is your first home? what state is it in? Just wondering.

Cheers

 

[want2bewealthy]

Yeah mate First home

Check with your local Government site for rules and regulations and elightability criterea.

 

[want2bewealthy]

Oh and also, when I move into the place, I can no longer use that percentage of my LOC as a tax deduction, can it be as easy as pay it back into that loan it came from which shares another IP's loan? seems complex.

 

[want2bewealthy]

Anyone?
Im at a bit of a loss with this one, from what I gather, the government 'gave' me the funds after Id already forked out with capitalised interest, if I had a good accountant who was happy to help me out Id ask but I dont. . Ive seriously got to find a good one,

So Im assuming that this tax free money is mine to do what I please with.