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
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 MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
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
Thanx
Yeah the extra few % return makes it worth while. ill get onto the accountant anyway
Jason
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