All Topics / Help Needed! / Looking for advice on negative gearing

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  • Profile photo of CluxClux
    Participant
    @clux
    Join Date: 2015
    Post Count: 1
    June 24, 2015 - 10:10 pm

    I have a question regarding negative gearing. My husband and I own a property that has a mortgage with a line of credit of $350,000 (there is nothing owing on the line of credit). We are trying to sell the property however have not been able to, we are therefore thinking about renting it out and wondered if we could draw down on our line of credit and then restructure our mortgage to an offset account. Thereby negatively gearing the property? Feel like we are stuck between a rock and hard place at the moment! Thanks

    Profile photo of Jamie MooreJamie Moore
    Participant
    @jamie-m
    Join Date: 2010
    Post Count: 5,069
    June 25, 2015 - 8:16 am

    Hi Clux

    Welcome aboard.

    The only way you could claim interest against the LOC is if you spent those LOC funds on something investment related.

    Cheers

    Jamie

    Jamie Moore | Pass Go Home Loans Pty Ltd
    http://www.passgo.com.au
    Email Me | Phone Me

    Mortgage Broker assisting clients Australia wide Email: [email protected]

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213
    June 25, 2015 - 8:24 am

    Yep Jamie is right. Simply drawing down a loan doesn’t make the interest deductible. Deductibility depends on what the funds are used for.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

Viewing 3 posts - 1 through 3 (of 3 total)

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