Hi all,
Could some one please set me straight on the following.
I have a substantial amount in my redraw on an investment property housing loan, (ie original loan for 15 years, 7 years into loan with 1 year remaining at current repayments/interest – ahead in repayments approx. 7 years).
If I was to redraw a certain amount of the redraw, thereby extending the time remaining but keeping it within the orginal 15 year contract – will the ATO let me claim the interest at the new increased amount per year or do they take a negative view of this? The reason for this is to pay off a loan on an investment block of land the interest of which is not being used as a tax deduction.
Look forward to any responses
When you redraw from a loan you are borrowing money again. So the extra interest incurred on this new borrowing will only be deductible if the money was used for investment or business purposes.
BTW, Interest on a loan for investment land should be claimable. Tell your accountant to look into Steele's case if he disagrees.
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
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