Hi.
If paying mortgage (principal and interest) of an investment property by using that investment property redraw account, can we claim 100% interest deduction from that investment home loan account?
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Not if you use the redraw amounts for private purposes. Check the tax ruling on redraw facilities.
From the link (paragraph 22)
" The deductibility of interest on a further borrowing of money under a redraw facility depends upon the use to which the redrawn funds are put."
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Not if you use the redraw amounts for private purposes. Check the tax ruling on redraw facilities.
From the link (paragraph 22)
" The deductibility of interest on a further borrowing of money under a redraw facility depends upon the use to which the redrawn funds are put."
Thanks Taxduck.
No, it is not for private purposes but it is paid wholly for the monthly mortgage repayment for that investment property. (paid from its own redraw account).
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