IP Offset monies for non deductible purposes?

Discussion in 'Accounting & Tax' started by Danielt25, 10th May, 2017.

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  1. Danielt25

    Danielt25 Well-Known Member

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    Brisbane Qld
    Hi I have an investment property.

    I have done a refinance of the loan/cash out to clean the slate and all refinanced monies are in an offset account.

    If I use these funds from the offset account for non deductible purposes, does that make the interest accumulating on the loan non deductible or deductible?
     
  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker Business Member

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    Marg4000 likes this.
  3. Zoolander

    Zoolander Well-Known Member

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    I believe this is correct. The refinanced extra cash you have is only tax deduction if used for investment purposes.

    Terry_w has a series of tax tips... aaaand Terry has posted so I'm not going to type anymor
     
    Marg4000 likes this.