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Tax Query

Discussion in 'Accounting & Tax' started by psylence, 4th Oct, 2016.

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  1. psylence

    psylence Member

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    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.
     
  2. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    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.
     
  3. Scott No Mates

    Scott No Mates Well-Known Member

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    As per @Terry_w or you may want to pay some other non-deductible loans.
     
  4. psylence

    psylence Member

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    I was thinking about putting it into shares as we are renting where we are living at the moment.
     
  5. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    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.
     
    a89moh likes this.
  6. Scott No Mates

    Scott No Mates Well-Known Member

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    You can borrow for those too.