My situation is when I found the right property, I was at the process of releasing equity for IP, and in securing a deposit I had to ask a relative to borrow until after settlement be paid back, Settlement is near, I will deposit the rest of my 10% deposit for property, I just wondering though is it possible to get out what I owe to my relative from seperate loan account for the deposit/renovations to pay them off and claim that interest? Just wondering the tax complications is all and if ATO would view that as no possible. Reason I did this was bank was screwing around with releasing my equity took more then a month.. and few lost contracts later
Tax complications?
- Thread starter vinnnnnn
- Start date
I had the same issue .Had to pay a deposit from our redraw on PPR as the equity loan funds had not been advanced to us. Once these funds were available we then withdrew the deposit and put it back into home loan. We are therefore unable to claim interest on the funds withdrawn to pay us back. It was only 20,000 but still if l had known at the time it would have been better to use a deposit bond. We have chosen to not claim the interest on the deposit because in the eyes of the ATO we want to remain squeaky clean
