Self Employed - Using Tax Savings to purchase property and resave?

Hi all,

I'm not sure if I'm making a stupid decision or a smart one. I'm considering using the money I have parked away for Tax come end of FY to put down a larger deposit on a PPOR. Currently, there is 17k parked away for tax, and I have already paid 2 payments of 3.5k as per PAYG quarterly payments, and expect another 2 payments of 3.5k due for the next 2 quarters. During this time I expect to park away another 12k.

I'm considering using this 17k and adding it to my savings that I have away for a deposit to purchase a home for me and my family, and deferring the tax and possibly getting an extension on it (if that is possible).

I currently earn 110-120k p/a and work from home, however, my current arrangement has me in a non-insulated garage that gets very hot in the summertime. As I work from home I am also wondering if I can get a tax break from purchasing a home with the intent to work in an allocated space there.

 

It may be possible for a self employed person to borrow to pay their tax and claim the interest.
You should seek professional tax advice.

 

Interesting thought. Ill make sure to seek professional advice regarding this.

Thanks!

 

Personal tax advice would be wise. Depending whether you you a sole trader or self employed by a company will affect what (if any) deductions could be claimed and what (if any) CGT impact is involved. Its often wise to claim deductions where these are available as not claiming them doesnt help the CGT issue. The way CGT is calculated could also work in your favour