What is the extra 50K going to be used for? This will determine the tax treatment.

Just get you accountant to add it in. No need for a new schedule

What Terry is trying to say is that, the purpose of the funds determines whether or not the interest will be deductible. By depositing the funds into your offset account, the initial purpose is not to pay the deposit. Ideally, the deposit should be paid directly from the loan draw down, not via your offset account. 

Hi Derek, 

Yeah I spoke to Jamie yesterday and it is a house and land deal. I was under the impression that because it hadn't been built yet that it was an off the plan.

I guess some of the risks are still the same i.e. market changing during build time, not being able to secure a tenant, build time running over, or not being up to…[Read more]