Cash for holding deposit

Lets supppse the loan against my ppor is 200k that's fully offset and I'm wanting to use this cash for the initial deposit of 5% or 10% of an IP.

In an ideal world I have already split the ppor into two loans. But I haven't done this yet.

If I used the cash sitting in the offset then the bank is able to refund the initial deposit and include it in the new investment loan.

From a tax perspective if the bank did this is new loan fully tax detuctible?

 

No

Use the money to pay down the loan and reborrow it.
This will cause a mixed purpose loan, but after settlement the loan can be split.


Tax Tip 5: Reimbursing yourself - Impossible Tax Tip 5: Reimbursing yourself - Impossible

Tax Tip 9: Don’t use Cash in Offset account to Invest Tax Tip 9: Don’t use Cash in Offset account to Invest

Tax Tip 44: How to Un-Mix a Mixed Loan Tax Tip 44: How to Un-Mix a Mixed Loan

Tax Tip 53: Paid Deposit with cash - how to fix big mistake before settlement Tax Tip 53: Paid Deposit with cash - how to fix big mistake before settlement

 

Thankyou Terry. I suspected that would be the case.

I'll read through those links later today