something I would usually ask my accountant but he is on holidays for a month We recently sold an Ip, have surplus funds sitting in a savings account at the moment. Our PPOR is paid off. We want to upgrade our PPOR next year. Can I dump these surplus funds in one of my IP offsets for now to reduce the interest being paid then take the funds back out of the offset and use them on a new PPOR next year or would this contaminate the IP loan making that portion no longer tax deductible?
My answer is yes, it's ok, you are putting the money into an offset and not paying down the loans in any way, shape or form. Note I'm not an accountant.
+1 @Gockie As long as it's not put into the loan account and then "redrawn" it should be fine but I'm not an accountant either
The question is......can you do better than 4% with the funds than putting it in the IP offset? I vote yes. pinkboy
This may be of interest: Tax Tip 82: Taking money from an offset account on an IP and Claiming Interest https://propertychat.com.au/communi...-account-on-an-ip-and-claiming-interest.6012/
My understanding it is OK as long there is no borrowed/loan funds in the Offset prior to this latest deposit. That is, the Offset was empty or only contained personal funds.
Tell us more pinkpal. We're only doing this for 6-12 months while we're house hunting but open to suggestions.
