Deductability Question

Discussion in 'Accounting & Tax' started by Willy, 16th Aug, 2020.

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  1. Willy

    Willy Well-Known Member

    Joined:
    12th Sep, 2017
    Posts:
    285
    Location:
    NSW
    Hi All,

    Quick deductibility question-

    I've got borrowed funds in an offset account and want to use the money to buy shares in joint names.

    To set the Commsec account up in joint names the account that is linked to it needs to be in the same joint names.

    Problem is the offset account where the funds are sitting is in my name only not joint names.

    I understand that if the borrowed funds were transferred to another joint account that we use then this would probably be mixing with non borrowed funds and risk deductibility.

    What if we were to set up a separate account in joint names to transfer the borrowed funds to which is then linked to Commsec and no other money ever went into this account and it was used solely for the purpose of investing the borrowed funds?

    Is that ok or do the borrowed funds have to literally go direct from the offset to Commsec?

    Thanks

    Willy
     
  2. Terry_w

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

    Joined:
    18th Jun, 2015
    Posts:
    41,667
    Location:
    Australia wide
    See my tax tip 1 and seek tax advice as it sounds messy. Prob not a good idea to jointly buy shares either