All Topics / Help Needed! / IP construction loan top up

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  • Profile photo of PrasPras
    Participant
    @p-morend
    Join Date: 2014
    Post Count: 1

    Hello
    I am building an ip, construction loan amount is 450k.Once ip finished it value may be around 550K. My question is if I access equity 50K by top in up exiting loan 450k to 500k. How will it impact to tax.

    Thanks
    Prasa

    Profile photo of spearsyspearsy
    Participant
    @spearsy
    Join Date: 2013
    Post Count: 5

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

    Profile photo of Jamie MooreJamie Moore
    Participant
    @jamie-m
    Join Date: 2010
    Post Count: 5,069

    Hi Prasa

    Welcome aboard :-)

    What will the equity release be used for? Personal or investment?

    If for personal use, you should set up the equity release as a separate loan account so you can distinguish non deductible from deductible debt.

    Cheers

    Jamie

    Jamie Moore | Pass Go Home Loans Pty Ltd
    http://www.passgo.com.au
    Email Me | Phone Me

    Mortgage Broker assisting clients Australia wide Email: [email protected]

    Profile photo of superAndrewsuperAndrew
    Participant
    @superandrew
    Join Date: 2014
    Post Count: 188

    If for personal use, you should set up the equity release as a separate loan account so you can distinguish non deductible from deductible debt.

    Agree with Jamie.

    For personal usu it won’t be deductible.

    For investment it will be.

    superAndrew | Property Analyser and Finder Tool
    https://property-analyser.com.au

Viewing 4 posts - 1 through 4 (of 4 total)

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