Forum Replies Created
Hi Andrew
'''You can gear your existing property easily by transferring the equity into your PP (the new home) and then using that homes equity as security for your old house which is now able to be geared 100%''
but is this useful for tax purpose ?
Mayuran
Hi Andrew
'''You can gear your existing property easily by transferring the equity into your PP (the new home) and then using that homes equity as security for your old house which is now able to be geared 100%''
but is this useful for tax purpose ?
Mayuran
thanks Terry
I have variable interest only loan . how do I pre pay the interest ? just transfer extra money into home loan ? or is there a special procedure with the bank?
Thanks
MayuranHi All
Who would you recomend in Sydney/ Sydney West area ?
Thanks
Mayuranbooge wrote:I've also been advised via this forum (and another learned mortgage broker on here!) to put the extra $15000 available for redraw from the IP loan into my current PPOR home loan offset. My accountant has advised me using the $15000 for the PPOR offset will not help for tax purposes and complicate tax more and not be advantageous. Thoughts?Hi Booge I had this confusion before as well – even though you are withdrawing the excess money you paid into you IP loan , as far as ATO is concerned, it is a new borrowing. purpose of this borrowing is reduce your PPOR loan not investment . hence interest portion of the 15000 is not tax deductible. Your accountant is right – you dont have extra benefit in doing this and it will complicate the tax return as well.
Terryw wrote:But, there may still be ways to do what you want to do, so don't give up.It may also be wise to apply for a private ruling..
How do i do that?
MayuranTerryw wrote:Mayuran wrote:Terryw wrote:Mayuran wrote:I also have similar question , I have a PPOR & IP , can i pay all the rent i receive to the PPOR , and take out another LOC and pay for the IP loan ? will this be allowed for tax purpose?Again, would depend on the situation and purpose. Why would you want to structure it that way?
So that i can reduce the interest on PPOR loan , which cannot be deducted against my income …
In that case the interest on the LOC would likely NOT be deductible. see:
TD 2011/D8Income tax: does a taxpayer's purpose of 'paying their home loan off sooner' mean that Part IVA of the Income Tax Assessment Act 1936 cannot apply to an 'investment loan interest payment arrangement' of the type described in this Taxation Determination?
http://law.ato.gov.au/atolaw/view.htm?docid=%22DXT%2FTD2011D8%2FNAT%2FATO%2F00001%22Thanks Terryw
you are great!
Terryw wrote:Mayuran wrote:I also have similar question , I have a PPOR & IP , can i pay all the rent i receive to the PPOR , and take out another LOC and pay for the IP loan ? will this be allowed for tax purpose?Again, would depend on the situation and purpose. Why would you want to structure it that way?
So that i can reduce the interest on PPOR loan , which cannot be deducted against my income …
I also have similar question , I have a PPOR & IP , can i pay all the rent i receive to the PPOR , and take out another LOC and pay for the IP loan ? will this be allowed for tax purpose?
Thanks Terry !
Whats the best way of avoiding next year? because their accounts going to earn even more interest next year…
Mayuran
Hi Charlie
you can use the excel loan amortization template to work this out.
To get this template , open excel , File >new> under the templates select '' loan amortization' template . this template can be used to check various senarios.in your case , you would add 45k under extra payments in month 1 and deduct 45k & agreed interest in month 12. and the ' time saving' would be the difference between ( scheduled # of payments and actual number of payments )…
hope this helps ..
there is a typo in my previous posting : saving to your sisted is 526.50 not 426.50 – cheers
One year savings should be calculated as follows…
Sisters mor = 7.17%
Agreed rate sister paying you: 6%
no of days in her account : 365 days
Amount : 45000As per my formula above (7.17&-6%) x45000 x(365/365)= 426.50
Hi Richard : what is the 182.5? and why are you taking 7.1% istead of (7.17-6)- 1.17%?
thanks
Mayuran
Yes what i meant by ‘`The rate she is paying’ – is the rate she agreed to pay you..
Mayuran
(Sisters Morgage rate – The rate she is paying) x 45000x (no of days in her AC/365)
cheers
MayuranHi Chief Wigam
Could you please provide the link to the online form you mentioned ? i tried to serch lee county website – no sucess..
also update me if you get the letter ?tks
MayuHi LadyO /Finspec
I am also very new to investing… looking for my first IP…& love to take part in discussions …
living in inner west willing travel as well….Mayuran
