Line of credits and Interest

Discussion in 'Accounting & Tax' started by Niksta, 9th Mar, 2018.

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  1. Niksta

    Niksta New Member

    Joined:
    9th Mar, 2018
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    Location:
    Canberra
    I have two LOC for 2 investment properties.
    As I have no interest is aquiring more property, I wish to focus on paying down the LOC debt.

    Will the Interest still be deductible if the LOCs funds are transferred back to Owner Occupier loan (offset account) just to get the low Interest rate? Is it worth it?

    Fyi. LOC rates are both 5.45%, while the owner occupied is 3.97% rate.

    Note, the LOCs were used 2 or 3 years ago to purchase the investment properties.
     
    Niksta, 9th Mar, 2018
    #1
  2. Terry_w

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

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    18th Jun, 2015
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    No the interest will not be deducitble
     
    Terry_w, 9th Mar, 2018
    #2