couple of questions re tax.
Scenario 1.
If i had a $100k IO loan for an IP and put in an extra $20k, then removed the $20k so the balance returned to the original $100k would that effect the tax deduction of the loan? Can i just claim the interest of the loan for the financial year assuming the loan doesn't go above the original value?
Would it be different if the $20k was removed to purchase another IP as opposed for personal reasons?
Most people seem to have an offset loan to park additional cash, is that the best way? Perhaps I need one of them.
Scenario 2.
If I bought a property in january to be an IP, but spent 2 months doing a reno, would the tax on the loan only become a deduction after the reno was completed and then rented or from the purchase date in January?
Sorry for the beginner questions...I need a new accountant, my current one seems like a novice as well as other professional people in my life..., but in the meantime I would be interested in answers to the above questions.
Scenario 1.
If i had a $100k IO loan for an IP and put in an extra $20k, then removed the $20k so the balance returned to the original $100k would that effect the tax deduction of the loan? Can i just claim the interest of the loan for the financial year assuming the loan doesn't go above the original value?
Would it be different if the $20k was removed to purchase another IP as opposed for personal reasons?
Most people seem to have an offset loan to park additional cash, is that the best way? Perhaps I need one of them.
Scenario 2.
If I bought a property in january to be an IP, but spent 2 months doing a reno, would the tax on the loan only become a deduction after the reno was completed and then rented or from the purchase date in January?
Sorry for the beginner questions...I need a new accountant, my current one seems like a novice as well as other professional people in my life..., but in the meantime I would be interested in answers to the above questions.