Refinancing house and turning it to IP in the future tax help

I would say 80% of accountants would not be across this stuff. If you want someone to look at everything for you @Terry_w should be able to help.

And for the future get yourself a good investment savvy broker that, while not giving tax advice, can set you up with the appropriate loan structure to stop you getting more mixed purpose loans in the future.

Mobile lenders are ok, but to be honest they really won't have any idea about the effect they can have on the deductibility of your interest in the future.

 

Only split the $65k if you will use it for more than 1 purpose.

 

Sorry I mean split the 65k from the 440k

 

Bloody oath!

 

Ok thank's, So will it make any difference if I do it before or after settlement of the refinancing

 

Best to do it from the beginning. But you could possibly do it after settlement depending on the bank.

 

We are able to do after settlement with CBA just was not sure where it came to make sure the extra money is put in the right offset

 

I'd use the LOC product for the $65k if you are talking CBA.

 

LOC is new to me never heard of it?

 

Viridian is the CBA product.

 

Ok, What benefit does it have over split IO? I see it doesn't have an offset account attached to LOC, that means we will be charged interest on this amount?

 

It sounds like you need to start doing some research.

 

I think so,

I just wanted to try do something to help out with our future goal. Now I've contaminated our current loan and not sure who to speak to, to help sort it out.

Thanks anyways for all the help

 

Speak to the person who does your tax return first.

 

Here is some info regarding the line of credit.

Unfortunately it's very hard to un-mix and mixed loan, don't stress about it, what is done is done. Focus on the future and what you can change. You can talk to the mobile lender about the line of credit.

To work out the % will be deductible start with your accountant or if you don't have one give @Terry_w a call and become his client.

 

Thanks, I have always done the tax myself as it has always been basic tax with a few office deductions. This year I used HR block for some travel allowance stuff but obviously they wouldn't be the best option to use and might be time to get a real tax accountant

 

Would you prefer to see someone face-to-face? What part of Victoria are you from?

 

Yes that is most likely what I will do, I understand that it is mixed.

Face to face does help when explaining things. I live in Mooroolbark 3138 in eastern suburbs.

 

I would touch base with ca-accounting.com.au/ . I know their website is a bit dated but Cathy is a super switched on accountant when it comes to property investors.

 

Thanks I will look into it.

With that in mind will it effect my current refinancing? Does it need to be sorted out straight away. I mean yes I now know the loan is mixed and that I cannot unmix it and will have to work out percentage of loan that is unmixed when it comes to renting it out ect.