Best to ask a tax agent/financial advisor or ask ATO's technical assistance
ATO has a ruling TR 2000/2
Do I need to split my loan
- No, that is not necessary
- Should you? - ask a financial advisor
can I just use the cash to pay down the mortgage & then immediately draw it out to buy the shares?
- That is the necessary step
has it been recommended by my accountant to make their job easier?
- Ask your accountant explain to you how it works
General information
The deductibility of a loan is connected to the purpose of the loan, regardless of what is used as the security. A redraw is considered a new loan. There are other rules such as for 'splitting' a loan, repayments, mixed purpose loans, apportioning and so on. Would be best you ask your accountant to explain to you.
6 views
6 views0 replies
0 replies
6 views
0 replies