Hey all, I have a property I've owned for about 8 years which we have just moved out of and now has tennants. Interest from loan is currently around $500/month and then rent earned/month is $1750. We have around 45k on the offset account on it. Is there any benefit to me taking the money from the offset account and using it for something else therefore increasing the amount of interest that will be charged compared to earnings for tax? Or because the interest would be still far lower than amount earned it's no use doing this? A bit confused, thanks.
Yes you could make a $45k tax deductible gift to a charity. Ongoing you would also have higher inter3st on the loan which you could claim. If you didnt want to make a gift where do you intend to put the money? Ideally it would be in an offset account against the main resident loan.
In the case it is just a matter of asking yourself will the shares return more than the interest you are saving by having the money if your offset account.