Hi,there! This is my first post to this forum
I bought an IP last week now tryingto figure out whether I can use money in my homeloan off set account to pay fo the IP and claim tax deduction.
I am confused as different people have given me different answers.May be I did not structure my question properly.
My home loan was $150,000, now balance owing is $130,000. I have $100,000 in my home loan off/set account, ie I am only paying interest of 6.23% on $30,000.
If I use the $100,000 in my home loan off/ set acc to buy IP ( this means I will have to pay interest of 6.25% on $130,000 on my home loan), is the interest on the $100,000 portion tax deductable?
Someone told me is not tax deductable because it comes out from my home loan off set acount, and the letter of offer clearly stated the purpose of the loan was to purchase an owner occupied property.
I checked the ATO website it states the they will look at the purpose of the loan.
However, a tax agent seems to think that it is still tax deductible. I am confused ...
My second query is :I issued a cheque of $20,000 from my home loan off set account for the deposit for the IP. Is the interest on $20,000 tax deductable?
Thanks for taking time to read this boring and naive.
Cheers
I bought an IP last week now tryingto figure out whether I can use money in my homeloan off set account to pay fo the IP and claim tax deduction.
I am confused as different people have given me different answers.May be I did not structure my question properly.
My home loan was $150,000, now balance owing is $130,000. I have $100,000 in my home loan off/set account, ie I am only paying interest of 6.23% on $30,000.
If I use the $100,000 in my home loan off/ set acc to buy IP ( this means I will have to pay interest of 6.25% on $130,000 on my home loan), is the interest on the $100,000 portion tax deductable?
Someone told me is not tax deductable because it comes out from my home loan off set acount, and the letter of offer clearly stated the purpose of the loan was to purchase an owner occupied property.
I checked the ATO website it states the they will look at the purpose of the loan.
However, a tax agent seems to think that it is still tax deductible. I am confused ...
My second query is :I issued a cheque of $20,000 from my home loan off set account for the deposit for the IP. Is the interest on $20,000 tax deductable?
Thanks for taking time to read this boring and naive.
Cheers