Redraw from car loan for property tax deductable?

[sanjayag]

Hi guys,

I have a car loan since Nov'08 of 20K with a redraw facility. I saved and paid 15k in advance in the last 6 months for that loan which is available for redraw. Now I want to redraw 15k out of that for the 10% deposit on an IP I'm going to buy. Are those 15k at 9.15% tax dedutable along with the normal 90% property loan?

 

[sanjayag]

Anybody there can pls reply? A simple "yes" or "no" will do.

 

[Perp]

I vote "yes", because the purpose is to purchase an IP.

 

[skater]

Technically, yes, the amount is deductable, however you will have to be very carefull with the way that you account for it. Each payment will have to be preportioned as to the percentage that is personal and the amount that is investment. Same with the interest charged.

I strongly suggest you see an accountant.

 

[sanjayag]

Thanks for the answers.

 

[DavidMc]

Yes. Ideally you'll have it setup as a separate account for easy of apportioning.