From: John P
I have a loan for an IP with a redraw of 100K.
I decide that for the next year I will use the redraw time and time and time again to take out varying amounts each time to spend on non-income producing items. Occasionally I make repayments as well, often being odd amounts. Let's say for the sake of this scenario I make 500 redraws and 20 extra payments in one fin.year.
The point I am trying to make here is that how are people in such a situation going to be able to separate claimable interest from unclaimable interest when doing the tax? I'm not sure that this has ever been addressed on the forum before? but it must be a growing concern with loan products becoming more and more flexible and often offering various types of lines of credit.
Surely this must represent a big dilemma for the ATO or am I just missing something here?
Dale, looks like we've been giving you quite a workout lately.
John_P
I have a loan for an IP with a redraw of 100K.
I decide that for the next year I will use the redraw time and time and time again to take out varying amounts each time to spend on non-income producing items. Occasionally I make repayments as well, often being odd amounts. Let's say for the sake of this scenario I make 500 redraws and 20 extra payments in one fin.year.
The point I am trying to make here is that how are people in such a situation going to be able to separate claimable interest from unclaimable interest when doing the tax? I'm not sure that this has ever been addressed on the forum before? but it must be a growing concern with loan products becoming more and more flexible and often offering various types of lines of credit.
Surely this must represent a big dilemma for the ATO or am I just missing something here?
Dale, looks like we've been giving you quite a workout lately.
John_P
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