Hi,
I have a PPOR with a loan of $420K and an offset account against that with $420K in it. All income (wages, rent etc.) goes into the offset. At the end of the money I transfer all extra funds to my crossed IP offset account.
I am looking at investment properties now in the $400K range and will borrow against the PPOR for the loan. To keep everything "pure" for taxation purposes, do I simply transfer the $420K into the PPOR account and then borrow back against it for the IP? I presume that if I take the funds out of the offset and purchase the property it won't be tax deductible?
Thanks for your help/advice
LE
I have a PPOR with a loan of $420K and an offset account against that with $420K in it. All income (wages, rent etc.) goes into the offset. At the end of the money I transfer all extra funds to my crossed IP offset account.
I am looking at investment properties now in the $400K range and will borrow against the PPOR for the loan. To keep everything "pure" for taxation purposes, do I simply transfer the $420K into the PPOR account and then borrow back against it for the IP? I presume that if I take the funds out of the offset and purchase the property it won't be tax deductible?
Thanks for your help/advice
LE