Tax deductible equity redraw?

[LukeLang]

If I get a loan extension on an ip and park this in my offset on ppor with the intention to buy shares in the near future is this loan extension tax deductible?
Do I need to hold shares for a certain time period to qualify for tax deductible?
Thanks

 

[Jamie M]

I'm not an accountant - so seek professional advice but I'd assume the answer is no.

Parking those funds in an offset linked to the PPOR would be a no no. You'd need to leave those funds in the equity releases redraw account to maintain deductibility.

Cheers

Jamie

 

[Terry_w]

If I get a loan extension on an ip and park this in my offset on ppor with the intention to buy shares in the near future is this loan extension tax deductible?
Do I need to hold shares for a certain time period to qualify for tax deductible?
Thanks

Probably will not be deductible.

 

[Paul@PFI]

If you have a redraw and draw funds to directly pay to buy income producing shares then interest is deductible for the period of ownership of the shares. The interest is deductible against the dividend income. (s8-1 ITAA)

If you buy shares that don't pay dividends then the deduction is not available. It may comprise a cost base of the asset for CGT purposes. When sold it may reduce the profit. So sort of deductible but not against other income if its a loss. Whereas a revenue loss as described in para 1 above can offset other (wages) income.