G'day all,
Question for the bean counters onboard:
I have a Mortgage on my PPOR. I then sell an IP and find that the proceeds from that sale after all debts paid are enough to fully offset my mortgage. The actual amounts are $280k Mortgage and $293k Offset account. The offset is in place for almost a year. So during that period I pay no interest on my mortgage.
Then say I want to use those Offset funds for further investment after 1 year. For Tax purposes, is it enough that I had fully offset the PPOR during that time to consider the funds now INVESTMENT grade and therefore claim the interest paid as a Deduction, or must I actually pay down the PPOR for that to be considered by the ATO.
If I pay down the PPOR I will have to reapply for the loan as it is doesn't have Redraw. It would be great If I could just reuse the money.
Happy Aussie Day everyone
Pedro
Question for the bean counters onboard:
I have a Mortgage on my PPOR. I then sell an IP and find that the proceeds from that sale after all debts paid are enough to fully offset my mortgage. The actual amounts are $280k Mortgage and $293k Offset account. The offset is in place for almost a year. So during that period I pay no interest on my mortgage.
Then say I want to use those Offset funds for further investment after 1 year. For Tax purposes, is it enough that I had fully offset the PPOR during that time to consider the funds now INVESTMENT grade and therefore claim the interest paid as a Deduction, or must I actually pay down the PPOR for that to be considered by the ATO.
If I pay down the PPOR I will have to reapply for the loan as it is doesn't have Redraw. It would be great If I could just reuse the money.
Happy Aussie Day everyone
Pedro