Small Redraw Mistake - Can I be dodgy?

[missgreeneyes]

Thank you Terry_w for all your advice.
I went to the bank I have my mortgage with and the minimum personal loan is $5000. So it looks like I'm stuck with my problem.
I'm scouting for another bank who will do a personal loan for the piddly sum of $900.
Thanks!

 

[wylie]

Is it not easiest to just apportion the interest at tax time and only claim for $249K and totally ignore the $1K.

Wouldn't that work? It would mean possibly a few dollars for your accountant to do the maths, but surely no more than five minutes' work?

Or am I missing something?

 

[missgreeneyes]

I can do it myself, but what I mean is it will carry forward forever and ever and ever....I will have to do it year after year on my tax returns until the day I sell this property.
Terry_w - would this work:
At the moment my loan is P&I. I am working on changeing it to interest only for tax purposes.
If I take out a new interes-only loan with the same bank for $250k-$900, will that 'cut off' my mistake so I can leave the past behind?
Same bank, but different loan (interest only vs P&I, so that is like taking out a new loan, isn't it?)
Thank you.

 

[Terry_w]

I can do it myself, but what I mean is it will carry forward forever and ever and ever....I will have to do it year after year on my tax returns until the day I sell this property.
Terry_w - would this work:
At the moment my loan is P&I. I am working on changeing it to interest only for tax purposes.
If I take out a new interes-only loan with the same bank for $250k-$900, will that 'cut off' my mistake so I can leave the past behind?
Same bank, but different loan (interest only vs P&I, so that is like taking out a new loan, isn't it?)
Thank you.

This may work. I recall reading an ATO ruling whereby a mixed loan can be split into 2 or more proportions. You could therefore split it into the respective portions and just pay off the $900 part.

 

[missgreeneyes]

Thanks Terry. I think I'll give it a shot.
Why not, since I have to shift my loan to interest-only anyway.
I'm just about to post a new thread regarding some tax calculations I've just tried to work out. I would love you to take a look and provide your feedback.

 

[Burnar]

As a follow-up, I brought this up with my accountant, and while he admitted it was dodgy. We decided to "overlook" the small amount of redraw and hope it doesn't get noticed. He seemed to think any penalty was unlikely and would be small.

I don't recommend this, just sharing my experience for anyone who reads or contributed to this thread.

 

[matto_]

so - agreed to overlook and hope it doesnt get caught. Is there a timeframe where you can expect it not to get viewed (and I assume it would only be viewed if you were audited)?

 

[Aaron_C]

so - agreed to overlook and hope it doesnt get caught. Is there a timeframe where you can expect it not to get viewed (and I assume it would only be viewed if you were audited)?

I think the ATO can't review tax returns more than 2 years old unless they have special grounds to do so.

 

[missgreeneyes]

I did get my loan changed from P&I to interest-only by the way.
But they kept the loan quantum the same!
I have to go hassle the bank to take the loan quantum down by $900.
but that may not work, as I'm 'paying back' a current loan, not 'taking outa new loan'