Hi everyone,
I've used my personal c/c's over the last 12 months to do cash withdrawals to pay the mortgage and reno costs at different points as cash was very tight.
I've just had the IP revalued after DA approval and a brisk reno. I expect to be able to repay all of these amounts with money left over to secure the mortgage for the next 12-18 months.
My question is 1) Do I keep a list of the cash withdrawal transactions I've done on the c/c's to pay the mortgage and repay just these amounts to ensure 100% interest deductability on the current IP mortgage? I don't want to repay more than the amounts I withdrew to be used as mortgage payments
Question 2) Is there a better way to repay this c/c debt and not lose the interest detectability of the mortgage?
Sorry if this is not coming out all that well, in my head it looks like this
Withdraw cash advance from C/C
^^^^^
Pay current mortgage so bank is happy
^^^^^^^^^
Pay high interest on C/C from cash advance
^^^^^^^^
Get revalue after DA and reno
^^^^^^^
New loan approved - additional funds are placed in the mortgage account this seperates property account from normal accounts
^^^^^^^
Work out cash advance amounts from C/C then repay the exact amounts from the new extra loan funds
^^^^^^^
All neat & tidy. The ATO sees a very transparent loan repayment?
First time doing this so please add your two bits worth if I'm wrong?
Thanks
I've used my personal c/c's over the last 12 months to do cash withdrawals to pay the mortgage and reno costs at different points as cash was very tight.
I've just had the IP revalued after DA approval and a brisk reno. I expect to be able to repay all of these amounts with money left over to secure the mortgage for the next 12-18 months.
My question is 1) Do I keep a list of the cash withdrawal transactions I've done on the c/c's to pay the mortgage and repay just these amounts to ensure 100% interest deductability on the current IP mortgage? I don't want to repay more than the amounts I withdrew to be used as mortgage payments
Question 2) Is there a better way to repay this c/c debt and not lose the interest detectability of the mortgage?
Sorry if this is not coming out all that well, in my head it looks like this
Withdraw cash advance from C/C
^^^^^
Pay current mortgage so bank is happy
^^^^^^^^^
Pay high interest on C/C from cash advance
^^^^^^^^
Get revalue after DA and reno
^^^^^^^
New loan approved - additional funds are placed in the mortgage account this seperates property account from normal accounts
^^^^^^^
Work out cash advance amounts from C/C then repay the exact amounts from the new extra loan funds
^^^^^^^
All neat & tidy. The ATO sees a very transparent loan repayment?
First time doing this so please add your two bits worth if I'm wrong?
Thanks