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Convert non deductible cashout to deductible

Discussion in 'Property Finance' started by almostthere, 4th Aug, 2015.

  1. almostthere

    almostthere Member

    Joined:
    22nd Jun, 2015
    Posts:
    19
    Location:
    Sydney
    Hello Finance Gurus,

    Could you please help clarify following scenario ?

    1. Cashout $10k from a property for non deductible purpose by creating a new offset & new top up (loan) account.
    2. Build up cash $10k
    3. Now , I need $10k for Investment purpose.

    Is there anyway I can turn my initial cashout to deductible now ?
    I don't want to utilize my $10k cash and loose the tax deductions.

    Thanks in advance.
     
  2. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

    Joined:
    18th Jun, 2015
    Posts:
    9,033
    Location:
    Sydney
    Pay $10k into the loan and then reborrow it to invest.
     
  3. almostthere

    almostthere Member

    Joined:
    22nd Jun, 2015
    Posts:
    19
    Location:
    Sydney
    Thanks Terry.

    So you mean.. I pay $10k to my loan account and then again redraw it back to my offset account?
     
  4. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

    Joined:
    18th Jun, 2015
    Posts:
    9,033
    Location:
    Sydney