I have a home loan with a 5.2% variable rate and offset account. Basically, I am wondering is it necessary to have the offset account home loan for taxation purposes (as I claim tax deductions for the properties home loan interest expenses). I have heard it is is complex to not have an offset account as when you take money out of a redraw home loan account it makes things messy for taxation reasons.
However, a lot of the cheaper loans don't have an offset account and I'm looking to change to a home loan with just a redraw account. If I change to another loan with just a redraw and no offset account and regularly have money coming in and out of the redraw account, will this create a mess come taxation time?
Thanks in advance for your help.
However, a lot of the cheaper loans don't have an offset account and I'm looking to change to a home loan with just a redraw account. If I change to another loan with just a redraw and no offset account and regularly have money coming in and out of the redraw account, will this create a mess come taxation time?
Thanks in advance for your help.