All Topics / Finance / REDRAW from Investment unit loan

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  • Profile photo of PLANTPLANT
    Member
    @plant
    Join Date: 2008
    Post Count: 3
    April 12, 2009 - 12:56 am

    Hi all,

    Have an investment loan and claim negative gearing currently.
    Can I deposit $30,000 now and then redraw $30,000 for my home improvements(not investment) in 3months without any tax concerns?
    Are there any restrictions or issues I need to be aware of?
    Investment Rocket Repay loan.

    Rgards

    Profile photo of crjcrj
    Participant
    @crj
    Join Date: 2004
    Post Count: 618
    April 12, 2009 - 5:40 am

    If you are making additional payments into your loan and then doing a redraw for private purposes that part of the interest on your loan will be non tax deductible.  An offset account on your loan would allow withdrawals on the offset not to affect the tax deductibility of the interest on your loan

Viewing 2 posts - 1 through 2 (of 2 total)

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