All Topics / General Property / PPOR upgrade

Viewing 4 posts - 1 through 4 (of 4 total)
  • Profile photo of garggarg
    Member
    @garg
    Join Date: 2009
    Post Count: 32
    October 21, 2009 - 2:02 am

    Hi,

    I bought home for 275K. I borrowed 265K (paid LMI).
    After extra payments my loan was 75K.
    Few month back i have redrawn 150K into offset account. So my loan is back on 225K

    Home value is 325K.
    I am looking to upgrade. i would like to keep current as investment.

    Please advise on tax deduction issues.

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213
    October 21, 2009 - 3:14 am

    Your loan was paid down to $75,000. When you rent it out the interest on this should be deductible.
    You withdrew $150,000 – the interest on this won't be deductibe. (there is no interest while it is sitting in the offset, but when you take it out the interest will only be deductible if it is used for investment or business.)

    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 garggarg
    Member
    @garg
    Join Date: 2009
    Post Count: 32
    October 21, 2009 - 3:17 am

    what will happen If i refinance with current / other lender?

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213
    October 21, 2009 - 3:27 am

    Nothing really changes in terms of tax.

    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

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

You must be logged in to reply to this topic. If you don't have an account, you can register here.