All Topics / Help Needed! / Is this scenario tax deductible?

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  • Profile photo of David AndersonDavid Anderson
    Member
    @david-anderson
    Join Date: 2009
    Post Count: 17
    October 6, 2010 - 6:56 am

    Hi,

    If I have a property that has 40% equity and I decide to setup an loc to fund a 10% deposit for an off the plan purchase is the interest incurred on the loc (10% deposit for off the plan purchase) tax deductible? If it is there a time frame on how long it is tax deductible and the property is completed?

    Could potentially then order finance for 100% of purchase price from potential growth on completion, reinvest 10% loc and have tax benefits if this is the case and avoid stamp duty in NSW ATM.

    Cheers.

    Profile photo of last chancelast chance
    Member
    @last-chance
    Join Date: 2010
    Post Count: 8
    October 6, 2010 - 7:25 am

    HI David,

    Have you considered a deposit bond? It may ge better value than a loc

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213
    October 7, 2010 - 4:41 am

    I think it may be possible -best to check with your tax advisor.

    LC, deposit bonds are a PIA. If you have the funds available I think it is easier to just use them.

    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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