hi
Does anyone know the tax law regarding depositing money in an offset account linked to an investment property loan.
I have spoken to the ATO and my accountant has spoken to them and we keep getting different answers.
We have basically been told that any significant cash deposit sitting against a investment loan will be seen as though we have paid off the loan and therefore we will not be able to claim the interest costs when we reinvest the capital. We have also been told that we can leave the money there and move it again with no tax consequence.
Just looking for clarity.
thanks.
Does anyone know the tax law regarding depositing money in an offset account linked to an investment property loan.
I have spoken to the ATO and my accountant has spoken to them and we keep getting different answers.
We have basically been told that any significant cash deposit sitting against a investment loan will be seen as though we have paid off the loan and therefore we will not be able to claim the interest costs when we reinvest the capital. We have also been told that we can leave the money there and move it again with no tax consequence.
Just looking for clarity.
thanks.