Tax complications, (need help)

From my post here, I decided to settle the 2nd property as an investment. Then I only asked one major question to the tax adviser. "If redraw $80,000 from 1st loan to settle the 2nd property as an investment property (rent it out the day after settlement) and I keep both property as an investment. Will I be able to claim tax on loan interest from both of them?" It will be 2 loan accounts separated from each other.

 

Honestly, I don't know the different of the final return until you made that calculation. But my concern is not about the amount that I will get in return. Which I will answer you in the next quote.

I do understand that but after I get the advice from tax advisor. I hope it's not wrong to cross check with people here in Property Chat as long as they are willing to give idea.

 

If you redraw it will be one loan. This will be a mixed purpose loan. No big deal as you can apportion the interest.

But you can split the loan to avoid mixing.

 

The information on this page here will answer all your questions above.
Pause your home loan repayments

cheers,

 

Notice this is only available for periods when you are out of work. Repayment holiday

 

read in the same page with the text here:
"It’s also possible to apply for a Repayment Pause if you’re ahead of your home loan repayment schedule."

 

Let us know how you go with it.

 

Why not pay off the original loan 16k completely and redraw the entire balance to purchase IP2? Would avoid any mixing of loans.

 

I can't. I am short for that $16k. I would like to go with that option as well. But the timing is not great for me.

 

Its normal if they think it could apply. Its not normal if a diligent tax adviser lodges the ruling request as we typically explain if a scheme MAY be evident or not. And then we ask the question

Its a disclaimer of sorts.