redrawing from IP loan
- Thread starter wendy
- Start date
That one comes up a lot here ...
Redraw for personal use and that bit of the loan isn't tax deductable anymore
Redraw for investment use and it is.
General advice here is have an offset account not redraw as it gets far less messy at tax time.
Redraw for personal use and that bit of the loan isn't tax deductable anymore
Redraw for investment use and it is.
General advice here is have an offset account not redraw as it gets far less messy at tax time.
DON'T redraw for personal use. Ever.
If you do, you are mixing deductible expenses with non-deductible, and it will be an accounting nightmare for ever and a day.
I just hope you didn't do any personal redraws while it was your PPOR, as that part of the loan will not be tax deductible........
Marg
If you do, you are mixing deductible expenses with non-deductible, and it will be an accounting nightmare for ever and a day.
I just hope you didn't do any personal redraws while it was your PPOR, as that part of the loan will not be tax deductible........
Marg
Just that % of it.
As Propertunity said, just that % of it.
But that wasn't the right question.
The question is "when I make a repayment to that loan (the loan that now has deductible and non-deductible portions), am I paying off the deductible portion, or the non-deductible portion?"
That question is infinitely more difficult to answer.
I guess it is going to get messy for our accountant.
Have not had to redraw since making a IP
BUT....we have had this loan for 7 years and have refinanced several times. Bought a car about 4 1/2 years ago, and added a pool to loan about 3 years ago. Oh and added a vacant block of land to loan as well.
Cashback for new roof, kitchen, flooring etc
We never thought we would ever move from our home.
Current loan is still less than what it is valued at with all added renovations and purchases (block and car).
We are going to sell the block Feb next year as I have heard we should not sell til we have had it for a year. Just to get the loan down.
Should we be selling the house as well. Then rebuying a different house just to start afresh? So it is not so messy?
We do have great tenants. Which is fantastic who love the house as there own.
Thankyou so much for your replies....we are new to this and any info is greatly appreciated
Have not had to redraw since making a IP
BUT....we have had this loan for 7 years and have refinanced several times. Bought a car about 4 1/2 years ago, and added a pool to loan about 3 years ago. Oh and added a vacant block of land to loan as well.
Cashback for new roof, kitchen, flooring etc
We never thought we would ever move from our home.
Current loan is still less than what it is valued at with all added renovations and purchases (block and car).
We are going to sell the block Feb next year as I have heard we should not sell til we have had it for a year. Just to get the loan down.
Should we be selling the house as well. Then rebuying a different house just to start afresh? So it is not so messy?
We do have great tenants. Which is fantastic who love the house as there own.
Thankyou so much for your replies....we are new to this and any info is greatly appreciated
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