Persistent loan purpose on refinance
- Thread starter Lotana
- Start date
Hi Lotana
I aint no xpert.
If the funds and any extra funds are used for investment purposes then yep, they is tax deductible
ta
rolf
I aint no xpert.
If the funds and any extra funds are used for investment purposes then yep, they is tax deductible
ta
rolf
Lotana,
It really doesn't matter what the bank believes the purpose is for. If the loan is to generate income then it is tax deductable. That is between you and the ATO.
The loan application asks the purpose of the loan to determine whether it fall under the UCCC (Uniform Consumer Credit Code). This is an additional set of rules to protect innocent consumers from unscrupulous lenders and their evil agents. The UCCC doesn't apply to the more sophisticated investors and business folk - that's why the banks ask the purpose of the loan.
That is a little tongue in cheek description but basically accurate.
If you need more info about the UCCC I have a complete set of notes I can email you. Great insomnia cure!
All the best,
It really doesn't matter what the bank believes the purpose is for. If the loan is to generate income then it is tax deductable. That is between you and the ATO.
The loan application asks the purpose of the loan to determine whether it fall under the UCCC (Uniform Consumer Credit Code). This is an additional set of rules to protect innocent consumers from unscrupulous lenders and their evil agents. The UCCC doesn't apply to the more sophisticated investors and business folk - that's why the banks ask the purpose of the loan.
That is a little tongue in cheek description but basically accurate.
If you need more info about the UCCC I have a complete set of notes I can email you. Great insomnia cure!
All the best,
Thank Rolf,
I should've made myself clearer. Let's consider this scenario.
Investment loan with outstanding balance of $100,000 with lender A is refinanced with lender B.
Th eoriginal loan from lender A was used to purchase an IP.
$100,000 from the new loan is used to repay the old loan.
Is the interest charged to the new loan tax deductible?
Regards,
Lotana
I should've made myself clearer. Let's consider this scenario.
Investment loan with outstanding balance of $100,000 with lender A is refinanced with lender B.
Th eoriginal loan from lender A was used to purchase an IP.
$100,000 from the new loan is used to repay the old loan.
Is the interest charged to the new loan tax deductible?
Regards,
Lotana
