Hi all
I'm about to put my house in Nowra on the market and realise some post development profit. I understand that all loans secured to the property must be repaid or a new security found. No issue there.
My conundrum is another loan secured to another property. I used about $50,000 of this loan to develop my selling property. I understand I don't have to pay it back but I need to because the second I sell its no longer tax deductable.
Issue is it's fixed for another year.
Can I simply pay back all my secured loans and park the $50,000 in a sterile savings until the fix is over( yes I know it won't be tax deductable for this period.)
Will the tax man still consider a connection between the sold investment and the parked funds etc
Cheers
Steve
I'm about to put my house in Nowra on the market and realise some post development profit. I understand that all loans secured to the property must be repaid or a new security found. No issue there.
My conundrum is another loan secured to another property. I used about $50,000 of this loan to develop my selling property. I understand I don't have to pay it back but I need to because the second I sell its no longer tax deductable.
Issue is it's fixed for another year.
Can I simply pay back all my secured loans and park the $50,000 in a sterile savings until the fix is over( yes I know it won't be tax deductable for this period.)
Will the tax man still consider a connection between the sold investment and the parked funds etc
Cheers
Steve