All Topics / Legal & Accounting / Redraw Woes???

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  • Profile photo of TeacherK6TeacherK6
    Member
    @teacherk6
    Join Date: 2003
    Post Count: 164

    Hello,

    I have $x ammount available for redraw from an IP loan, if i take out a certain ammount and place it into a term deposit or managed fund, ie another income producing investment is the difference in interest repayments of the loan fully tax deductable??? (NSW)

    Thankyou!!

    Jason

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    I imagine it should be. You would be borrowing to invest with the intention of making money.

    Check with your accountant before doing it.

    Terryw
    Discover Home Loans
    North Sydney
    [email protected]

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of Carlyle81Carlyle81
    Participant
    @carlyle81
    Join Date: 2005
    Post Count: 10

    Hi Jason,

    As Terry said check with your own accountant first but it generally would be. However I couldn’t see you getting a better return out of a term deposit than the interest rate on the loan, therefore costing you money in the long term. Make sure the return you expect on the investment is at least 1% better (if not more) than the interest rate on your loan otherwise it may not be worth it.

    Carlyle

    Profile photo of TeacherK6TeacherK6
    Member
    @teacherk6
    Join Date: 2003
    Post Count: 164

    Thanx :)

    Yeah the extra few % return makes it worth while. ill get onto the accountant anyway :)

    Jason :)

Viewing 4 posts - 1 through 4 (of 4 total)

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