Good evening
I have 2 questions relating to vendor finance.
I am looking to vendor finance our home (in qld) as we are looking to move. Will I have to pay tax on the interest from the buyer coming
in on the installment contract? Will I be able to claim the interest I pay on my home loan as a tax deduction?
Advice appreciated
The profits will be taxable.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Thanks Terry
Does that mean the difference between the Interest I receive and I pay is the profits and is taxable?
Possibly
see ATO ID 2004/407
http://law.ato.gov.au/atolaw/view.htm?rank=find&criteria=AND~instalment~basic~exact&target=J%20JA&style=html&sdocid=AID/AID2004407/00001&recStart=21&PiT=99991231235958&recnum=34&tot=3263&pn=ALL:::ALLTerryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
That ATO ID Terry mentions is definitely worth a read. And as you say, it's pretty much the difference between the Interest you receive and pay, i.e. the profits, and is taxable.
While our site, http://www.negative2positive.com.au is setup to promote our service to help people sell their properties with vendor finance, it does have a lot of free information about the process that I believe will help.
Cheers, Paul
Paul Dobson | Vendor Finance Institute
http://www.vendorfinanceinstitute.com.au
Email Me | Phone MeAn alternative way to finance your home.
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