All Topics / Finance / Using Offset account for Primary residence and rental property

Viewing 2 posts - 1 through 2 (of 2 total)
  • Profile photo of OR1ONOR1ON
    Member
    @or1on
    Join Date: 2009
    Post Count: 10
    July 21, 2009 - 4:31 am

    I currently have a rental property with which I am using an offset account for the mortage. As I haven't used all of the mortgage amount, I am sub-dividing the land and building a town-house in which I am planning to live.

    I am unsure of the implications for the offset account (for taxation purposes) – if one property is used to produce assessable income and the other is a primary residence.

    Could anyone please offer any advice regarding my and/or suggest alternatives?

    Thanks

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213
    July 21, 2009 - 7:56 am

    Offset account would have no tax consequences as interest is not paid. But if you have a choice you should move the offset to the owner occupied loan. You should save non-deductible interest if you can. If you are thinking of having one biog loan, then this is no good at all for tax reasons and you should seek tax advice.

    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 2 posts - 1 through 2 (of 2 total)

You must be logged in to reply to this topic. If you don't have an account, you can register here.