Can reimbursement for deposit payment cause mixing?

Discussion in 'Accounting & Tax' started by Invest_noob, 30th May, 2017.

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  1. Invest_noob

    Invest_noob Well-Known Member

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    Hi all,

    I've paid 15k deposit for an IP out of my savings account and am going to be reimbursed from the bank loan upon settlement tomorrow. The reimbursement of 15k will be paid into the IP loan offset account, but it's just struck me that this could cause mixing of loan funds in the offset account with the other amounts that I will be putting into the offset account. If I then spend this 15k for non-investment related expenses, can I still claim interest paid on it? Is there any other way for me to claim interest on the 15k if I spend it on non-investment expenses?
     
    Invest_noob, 30th May, 2017
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  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Yes definitely mixing. However you do it tne interest on the $15k wont be deductible
     
    Terry_w, 30th May, 2017
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  3. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Terry_w, 30th May, 2017
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  4. Invest_noob

    Invest_noob Well-Known Member

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    Great tips Terry, you're always so helpful. Thank you!
     
    Invest_noob, 31st May, 2017
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