LOC Repayments

Discussion in 'Money Management & Banking' started by Vagon, 7th Apr, 2010.

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  1. Vagon

    Vagon Active Member

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    Does anyone know if its fine to let the LOC repayments accumulate while paying off the PPOR loan?

    My intention is to pay the equivilant amount into the PPOR and let the LOC build up, but I wasnt sure on the tax implications.
     
    Vagon, 7th Apr, 2010
    #1
  2. GregReid

    GregReid Well-Known Member

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    Vagon,
    You have not provided enough information to be able to provide an answer.
    Do you have an investment asset earning income and are funding it using a separate LOC in part or full?
    Is the LOC secured against the investment asset or against the PPOR?

    There have been previous discussions on this topic it may be worth reading as well.

    Greg
     
    GregReid, 14th Apr, 2010
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  3. Vagon

    Vagon Active Member

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    Hi Greg, actually Rob G helped me out when I made a repost here.

    Thanks for your time
     
    Last edited by a moderator: 14th Apr, 2010
    Vagon, 14th Apr, 2010
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  4. Vagon

    Vagon Active Member

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    I have shares fully funded by the LOC

    LOC is secured against the PPOR

    I had a fairly good look around LOCs but must of missed it apologies.
     
    Vagon, 14th Apr, 2010
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  5. GregReid

    GregReid Well-Known Member

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    There have been a number of court cases and ATO determinations around this issue so it is reasonably clear that it is allowable if done correctly and not used just for tax evasion.

    There is an Article posted that is worth reading, not exact to what you are doing but a general thrust. I agree, it is not as easy as it could be finding similar threads as it could be.
    Greg
     
    GregReid, 14th Apr, 2010
    #5