family loan and maintaining deductibility

Discussion in 'Accounting & Tax' started by sandyfeet, 23rd Oct, 2016.

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  1. sandyfeet

    sandyfeet Well-Known Member

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    Hi all,

    i thought i had heard about this previously but didn't quite understand how/if it worked.

    basically we are waiting for equity to be released and would like to lodge plans and get the ball rolling beforehand.

    can family 'loan' a sum of money for water/council fees etc so we could lodge plans and when equity funds are available pay the 'loan' back whilst maintaining deductibility?

    thanks
     
    sandyfeet, 23rd Oct, 2016
    #1
  2. Terry_w

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

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    possibly
     
    Terry_w, 23rd Oct, 2016
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  3. sandyfeet

    sandyfeet Well-Known Member

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    would it be a chance if the family loan was paid into an account that only has investment expenses deducted from it (no mixed purpose); and,
    loan was paid back from the new loan created from equity release that will also only be used for investment purposes?
     
    sandyfeet, 23rd Oct, 2016
    #3
  4. Terry_w

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

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    No because that would create a mixed purpose loan.
     
    Terry_w, 23rd Oct, 2016
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  5. sandyfeet

    sandyfeet Well-Known Member

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    ok thanks terry, have you done a tip on this concept, or a link to some info?
     
    sandyfeet, 23rd Oct, 2016
    #5
  6. Terry_w

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

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    Yes, there are some tips - look for 'parking' cash in accounts and 'mixing' or 'mixed purpose' loans.
     
    Terry_w, 23rd Oct, 2016
    #6
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