Capitalise CGT Bill

Discussion in 'Accounting & Tax' started by Goosehead, 3rd Jan, 2022.

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  1. Goosehead

    Goosehead Well-Known Member

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    Is it possible to capitalise a CGT bill?

    Example, I sell an investment property and realise a CGT event that generates a tax bill of $20k. I have the choice paying using $20k from an offset account against PPOR, or I can redraw from a loan on an investment property currently with $20k available in redraw. Can I use the redraw to pay the bill and continue to claim the interest?
     
    Goosehead, 3rd Jan, 2022
    #1
  2. kierank

    kierank Well-Known Member

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    … OR withdraw the $20k from an offset account against an IP and DEFINITELY claim the interest.
     
    kierank, 3rd Jan, 2022
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  3. Scott No Mates

    Scott No Mates Well-Known Member

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    If you're borrowing to pay the CGT on a property that you no longer own, then the purpose of the borrowings fails the test.
     
    Scott No Mates, 3rd Jan, 2022
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  4. Terry_w

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

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    Terry_w, 3rd Jan, 2022
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