here's the deal, my wife has recently sold her IP. We are looking at putting the $ in my offset account linked to my PPOR mortgage or straight on the PPOR mortgage. The effect on interest and accessability is negligble( westpac premier rocket) we can redraw at no cost .
The question is on future options, say we buy a new PPOR and seek to use the current PPOR as an IP , we would be better to keep the money OUT of the mortgage in the offset accnt so we can take the $ with us leaving a debt on the IP for neg gearing etc ?We are looking at a joint account/mortgage for our current PPOR with offset account as we have just been married, any obvious issue with future options/taxation etc I earn significantly more than her, better keeping accounts seperate for any reason?
thanks
don't pay it into the loan, keeping it in the offset is ideal for the future PPOR>
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Terry has hit the nail on the head.
Dont pay off the loan as the interest on redrawn amount will not be Tax deductible.
Richard Taylor | Australia's leading private lender
even when i can redraw from the loan at a click of a button ?
dirty sanchez wrote:even when i can redraw from the loan at a click of a button ?Yes, because the test for deductibility of interest is, what were the borrowed funds used for? As, in your example, they would be used for a new PPOR, the interest on the redraw would not be deductible.
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