I have gone through these threads but couldn't come to clear conclusion: Tax Tip 290: Tax Deductions When Prepaying Interest What is prepayment...
It is generally ‘use’ to which the borrowed funds are put that determines deductibility of interest on a loan. Some say it is the ‘purpose’ of...
When debt recycling with small amounts it is easy to end up with a mixed loan due to the fact that the minimum loan size being higher than the...
Yesterday I came across someone who did some debt recycling before taking advice. He had inadvertently reduced the amount of tax he could claim...
A trust is not an entity so you cannot contract to sell to the ‘trust’ unless the trustee is a different person from the current owner. An owner...
I think some people inadvertently bugger up the deductions on loans used to buy shares. This might happen because shares are more fungible – they...
If interest on a loan is deductible it is possible to prepay up to 12 months of interest and to claim a deduction in the year that the interest is...
Taking money out of a loan is considered new borrowings for tax purposes. A deposit into a loan is a repayment. This creates a few issues when...
Hi all, I was wondering if there was anyone out there that could give me some input on a dilemma I have around IO vs P&I. My investment loan...
For anyone contemplating a repayment holiday on their loan, you must realise that the lenders will still be charging interest, and this will be...
One common misconception that I see goes something like this: Borrow from a LOC to buy say $100,000 worth of shares that produce income. Claim...
Hi All, My current situation: Me: 31M, $128k + super Defacto Partner (not a Permanent Resident of Aus) : 31F, $55k +super Living in a 2 BR PPOR...
I have stumbled across a new situation concerning deductibility of interest. Son borrowed money from mum and dad who basically let the son use...
Hi all, I was working through a test scenario of buying a $2.1 property as a PPOR, and renting out 1/3 (one floor) for a long term let, plus...
3 co-owners (likely to be tenants in common) with A 50% B 25% and C 25% of $1m property. Owner A will live in the property and have home loan for...
Back to basis – I don’t think I have written a tax tip on refinancing. Refinancing one loan with another loan does not change the deductibility...
In the past we would have said that is not possible to borrow to make a super contribution and to claim the interest. But the laws have recently...
Some investors end up selling a property or shares at a loss. They may have borrowed to acquire the property or shares but the sale proceeds may...
There are 2 major issues when taxpayers want to claim the interest on a loan relating to a former main residence: a) Redrawn amounts b)...
Changing your mind on off the plan/Construction and deductibility of interest Sometimes a change in intention can result in a different tax...
Separate names with a comma.
