IP loan with Redraw and Offset

Discussion in 'Accounting & Tax' started by Charch, 21st Mar, 2017.

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  1. Terry_w

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

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    Contaminated.

    You would need to split the loan first and then pay it down and then you could later redraw and claim the interest
     
    Terry_w, 24th Mar, 2017
    #21
  2. Charch

    Charch Well-Known Member

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    So if my original loan was $250K and I originally had $50K in the redraw, I would need to split the loan in two as $200K and $50K, then put the $50K back into the second loan to make it a balance of $0, then I could draw the $50K out later and claim the interest on the second loan.

    Hope that makes sense.
     
    Charch, 24th Mar, 2017
    #22
  3. Terry_w

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

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    Yep
     
    Terry_w, 24th Mar, 2017
    #23
  4. Charch

    Charch Well-Known Member

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    Thanks for promptly confirming Terry. Really appreciate your time and insight!
     
    Charch, 24th Mar, 2017
    #24
    Terry_w likes this.
  5. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    Terry I reckon there is a way to establish a trust that issues units and redeems them to help people to address borrowing purpose from a offset.....

    Trust must pay income
    Not a scheme. Hmmm. Trustee not a scheme beneficicary ?

    There is precedent. Taxpayers Assoc buy shares that are all but valueless.....Needs somethinking....
     
    Paul@PAS, 24th Mar, 2017
    #25
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