Loan structuring - extracted equity

Discussion in 'Accounting & Tax' started by GotToStartSomewhere, 18th Sep, 2020.

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  1. GotToStartSomewhere

    GotToStartSomewhere New Member

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    Hi all,

    I had a fixed investment property loan with CBA and recently refinanced with ANZ.

    During the refinance, i 'extracted' equity (albeit, not much) and set it up as a split loan. In the process of breaking the fixed loan with CBA, it seems that the break fee was deducted from the equity portion of my split loan and the difference has been deposited into my offset account.

    I guess my main concerns are around deductibility, and if there is any issue with how they've executed the refinance?

    Thanks in advance :)
     
  2. Terry_w

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

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  3. GotToStartSomewhere

    GotToStartSomewhere New Member

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    Is that the case even if all loans associated are investment loans? If so, what would be the best course of action? Pay down everything into the split loan?
     
  4. Terry_w

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

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    Get some specific tax advice is my suggestion
     
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