Forum Replies Created
I have the same Set Up:
1) Rent from the IP goes into the 100% Offset account lnked to the PPOR.
2) Loan of the IP is Interest Only, and the Interest Only Repayments gets debited from the LOC on PPOR.
3) LOC is Interest Only, and the Interest Only Repayments gets debited from the 100% Offset account lnked to the PPOR.
If the IP is -vely geared, the deficit will get added on to the LOC. ( Eg: IP Loan Repayment = $1800 taken out from LOC; Interest Only Repayment on $1800 taken out from 100% Offset linked to the PPOR)
Do we put money back into a Tax Deductible Debt ??
AM2778
State where the Property is located – VIC
I have the following:
* paper lease signed by landlord (former owner) and tenant ? Yes. Secure Lease till the 30/04/2012.
* a tenant bond lodged with the Rental Bond Board ? No. The Former Landlord and Tenants are known to each other.
* an inbound condition report ? No. The Property is in really good condition. The Tenants have invested their own money in the Property
* a printed record of rent paid to date during the tenancy ? No
*application details of the tenant like personal details like drivers licence details, ID, rego, next of kin, references, work contact details, – No
I am quite keen to keep them as tenants.The question is, if the lease is till 30/04/2012, can I leave the lease "as is" and just chage the Landlord from the former, to ourselves??
AM2778
Thanks Terry.
No schemss for me.
Looks like its constant supervision to co-oridniate the repayments between the Loans that I have and making sure that LOC is always topped up after all the deductions occur.
Cant beging to imagine how complicated it is with a multi – Investment Portfolio.
Could there be an "Equity Bin" – One LOC servicing all the IPs ??
That way. the PPOR and the LOC is kept out of the Cash Flows and Deductions ??
cheers
AM2778From my understanding, Interest on Investment Loan is Tax Deductible. Is Interest on Interest charged for the Investment Loan also Tax Deductible?
Also, can offset account be shared between 2 loans ?
Thanks Terry
I have a question –
If Interest Only Repayments on Loan C are getting debited from Loan B and Interest Only Repayments on Loan B are getting deducted from a Transaction/Savings Account, then
Wouldnt the funds available in Loan B be decreasing ?
I would assume that the amount of Repayment of Loan C would be far greater than the amount of Repayment for Loan B?
Where will be the rent deposited and how will the Tax Refund be disbursed ?
AM2778
From my knowledge, Legal Expenses on Investment Property are not Tax Deductible.
Needs to be verified from a Tax Accountant.
AM2778
Thanks Terry.
I have a question:
1) I took out a seperate loan (as an Equity Release) from PPOR. I usesd some of the funds for Personal Stuff – Debt consolidation, PPOR Renos, etc.
2) I have refilled the funds so that the whole amount of Equity is available
3) I intend to use the funds from the Equity Release, to put in a deposit for the an IP Purchase.
Can this be done. Would the ATO allow the deductions ??
cheers
AMThanks Terry once again.
Thanks Terry.
I do have a seperate Loan for the Equity Release.
Agree with depositing the Rent into the Offset Account.
But where should the IP Mortgage Repayment come out from ??
If youre saying not to reduce the Investment Debt, then how can I leverage extra cash for borrowing for future IP purchases ??
cheers
thanks a lot for the information. Appreciate it. Will check the link.