All Topics / Legal & Accounting / Tax deduction

Viewing 7 posts - 1 through 7 (of 7 total)
  • Profile photo of pcnpcn
    Participant
    @pcn
    Join Date: 2013
    Post Count: 13
    June 10, 2014 - 9:18 pm

    Hello,
    I have a question regarding tax deduction.
    I am arranging a finance to top my investment loan (access equity from my PPOR). However, it won’t be ready before I need to use the fund for the deposit for my investment property.
    I can borrow the fund from my relative to pay the deposit for my investment property. Once the bank makes the fund available in my investment loan, I will pay back my relative.
    Is the amount I used for the deposit tax deductible?

    Thanks,
    PC

    Profile photo of Jamie MooreJamie Moore
    Participant
    @jamie-m
    Join Date: 2010
    Post Count: 5,069
    June 10, 2014 - 9:20 pm

    Hi PC

    Speak with your accountant about this one – it’s a good question.

    An alternative is to use a deposit bond.

    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 pcnpcn
    Participant
    @pcn
    Join Date: 2013
    Post Count: 13
    June 10, 2014 - 9:27 pm

    Thanks Jamie,
    How the deposit bond works? could you provide more information?

    Regards,
    PC

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213
    June 10, 2014 - 9:42 pm

    Best to speak to a lawyer and a tax adviser. yes you could enter into a loan agreemennt with a relative and then refinance this loan with a bank loan. Need to be careful as there are many issues.

    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

    Profile photo of pcnpcn
    Participant
    @pcn
    Join Date: 2013
    Post Count: 13
    June 10, 2014 - 9:46 pm

    Thanks Terryw,
    Do you think it’s better to apply and use a personal loan from the bank and later on use the fund from the investment loan to pay off and close the personal loan?

    Thanks,
    PC

    Profile photo of Jamie MooreJamie Moore
    Participant
    @jamie-m
    Join Date: 2010
    Post Count: 5,069
    June 10, 2014 - 9:58 pm
    pcn wrote:

    How the deposit bond works? could you provide more information?

    Hi PC

    No worries. It’s literally a piece of paper that substitutes cash when paying the deposit.

    Takes less than a day to arrange and costs a small fee. Deposit Power is probably the most well know provider – http://www.depositpower.com.au/dpg/

    This would be the easiest option in my opinion.

    Just check with the vendor if they’ll accept a deposit bond (most will).

    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 TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213
    June 11, 2014 - 9:05 pm
    pcn wrote:

    Thanks Terryw,
    Do you think it’s better to apply and use a personal loan from the bank and later on use the fund from the investment loan to pay off and close the personal loan?

    Thanks,
    PC

    Whatever is cheaper and easier.

    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 7 posts - 1 through 7 (of 7 total)

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