Moving Money from one LOC to another

Hi all,

I am wanting to transfer some $ from one LOC to another. Both LOC's are used for investment purposes only. Will I interfere with the deductiblity of the LOC's if I do this transfer? The reason I am wanting to transfer funds is to run my mortgage payments through a LOC which needs more funds in it.

Any thoughts appreciated.

Regards Jason.
 
Proper taxation advice should be sought from your accountant, but from your brief description I can't see why there would be a problem with tax deductibility due to the transfer, assuming the accounts have been used for the same entity (ie. one's use if for investment in your name and another's is for investment in a trust).
 
Like Pete said, talk to your accountant. I do this regularly. I have several loans that are "general investment loans" and the interest for them gets apportioned between the properties.
 
Hi guys... I am new here but have been browsing for ages and decided to register at last. I've always found this forum a good resource.

It all comes back to the initial purpose of the loan. As you stated, the initial purpose was for investment purposes. On your end all you would need to do is track where the money is going, as that portion against the original investment would still be deductible.

The only distinction the ATO worries about is if money is being transferred out for private purposes as then it is not deductible.

Cheers.
 
Thanks for the replies, Skater, PT Bear and Bernardp.

From your responses it sounds as though this is possible. I shall check with my accountant before I actually make the transaction though! :eek:

Regards Jason.
 
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