Can someone please give me some advice?
I am currently living in my house which has a principal and interest loan.
I am making extra repayments which are then available thru a redraw facility at any time.
I plan on moving out and buying another property to live in. I plan to then rent out my current property.
My question is if I redraw the additional repayments I have made and use them to buy a new house for me to live in, will I be able to claim the interest paid on the redrawn money as a tax deduction?
Hope that makes sense.
Thanks,
Spidey. [}
]NO NO NO
It is the purpose of the loan that makes it deductable not the security used. You draw the funds to buy a home then no deductions allowed.
Depending on your time frame I would recommend some different strategies.
Simon Macks
Mortgage Hunter
[email protected]
0425 228 985Thanks Simon for the quick reply. I really need a new accountant. My current one is such a tool. I’m not going to pay off any more of it from now on, that’s for sure.
Spidey.[}
]Put it in an offset account.
There are strategies you can employ however they are expensive. You need to wiegh up benefits and seek professional advice.
One is to sell the property to a trust, incur stamp duty and finance it back to 100%.
There are some CGT issues to consider here too.
Simon Macks
Mortgage Hunter
[email protected]
0425 228 985
]
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