COmmonwealth MISA offset account and investment loan tax implications

Viewing 8 posts - 1 through 8 (of 8 total)

Woody1986
Participant
@woody1986
Join Date: 2010
Post Count: 57
June 24, 2012 - 4:01 am
HI
have an investment loan and a MISA offset account…With all the tax implications I was wondering if anyone has experience with this offset account and tax implications. I want to keep money in the MISA account and then move it to my transactional account just before my monthly home loan repayment is due to maximise interest offset and save money….Will the whole loan portion still be able to be claimed at tax time or will they class this as mixing my loan funds with Personal funds.. I have read threads and believe that I will be ok to do this as opposed to taking out of a Redraw account although I just wanted to know if anyone would have any dealings with this as I believe this should be a general question and not a personal circumstance question
thanks
Jamie Moore
Participant
@jamie-m
Join Date: 2010
Post Count: 5,069
June 24, 2012 - 6:27 am
Hi James
I’m not an accountant but utilising an offset account in the manner described shouldn’t cause any tax dramas.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone Me
Mortgage Broker assisting clients Australia wide Email: [email protected]
Sundance
Participant
@sundance
Join Date: 2012
Post Count: 57
June 24, 2012 - 10:14 am
Hi James,
I purhased an investment property several months ago through CBA. There is an offset account against the loan. Each week our wages get transferred to the offset account and we use our credit card to live off for the month. I also transfer the rent received into the offset account. At the end of the month I transfer the necessary funds back to the transactional account to make the loan repayment and pay the credit card.
Cheers,
Sundance
Cheers,
Sundance
Jamie Moore
Participant
@jamie-m
Join Date: 2010
Post Count: 5,069
June 24, 2012 - 1:10 pm
Sundance wrote:
There is an offset account against the loan.
Hi Sundance
Do you have a PPOR debt or any other non-deductible debt such as a personal loan, credit card, etc? If so, knock that on the head first before placing funds into the IP offset. If you do have a PPOR loan – forget about using the IP offset and set up an offset against the PPOR instead.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone Me
Mortgage Broker assisting clients Australia wide Email: [email protected]
Richard Taylor
Participant
@qlds007
Join Date: 2003
Post Count: 12,024
June 24, 2012 - 5:24 pm
Sundance don’t worry CBA have told us they have a fully transactional offset coming soon. Trouble is they told us that 5 years ago.
No issue with what you are doing but boys it is complicated and old fashioned with CBA.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Solomon10
Participant
@solomon10
Join Date: 2010
Post Count: 135
June 24, 2012 - 10:42 pm
Agreed Richard, the cba misa does seem complicated compared to offsets offered by other lenders. Btw are you having trouble with posting from your tablet? Lots of multiple posts lately?
Richard Taylor
Participant
@qlds007
Join Date: 2003
Post Count: 12,024
June 25, 2012 - 10:08 am
Hi Soloman
Yes on holiday in Jasper, Canada,
Only have to breath on the IPad in the Mountain air and you end up posting a dozen times.
That and of course I am trying to get my posts up lol.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Sundance
Participant
@sundance
Join Date: 2012
Post Count: 57
June 25, 2012 - 10:56 am
Jamie M wrote:
Sundance wrote:
There is an offset account against the loan.
Hi Sundance
Do you have a PPOR debt or any other non-deductible debt such as a personal loan, credit card, etc? If so, knock that on the head first before placing funds into the IP offset. If you do have a PPOR loan – forget about using the IP offset and set up an offset against the PPOR instead.
Cheers
Jamie
Thanks Jamie, all good. Our PPOR is paid off and we don't have any other debt. Have been in contact with you offline in regard to setting up for our next IP.
Cheers,
Sundance