Hi Somersofters!
I've got a query regarding the deductability of a deposit. Here is the situation
Purchased a IP (my first) in a private treaty on the weekend, a 10% deposit is due tomorrow. I have the funds available in an offset facility on my PPOR loan and intend to finance 100% of the PI through debt including costs, agreed with the bank. The funds from the bank will not be available tomorrow so I will need to use fund from the offset.
Will it be tax deductable is I use this from the offset, or do I need to put the funds off the loan and redraw to get the deductability. Or is there another way to do this and retain the 100% tax deductability on the new IP
Thanks
I've got a query regarding the deductability of a deposit. Here is the situation
Purchased a IP (my first) in a private treaty on the weekend, a 10% deposit is due tomorrow. I have the funds available in an offset facility on my PPOR loan and intend to finance 100% of the PI through debt including costs, agreed with the bank. The funds from the bank will not be available tomorrow so I will need to use fund from the offset.
Will it be tax deductable is I use this from the offset, or do I need to put the funds off the loan and redraw to get the deductability. Or is there another way to do this and retain the 100% tax deductability on the new IP
Thanks