Hi, say I have a mortgage of $100,000, and the value of the house is $300,000.
I'll be able to get: $140,000 (hypothetical scenario: 80% * 300,000 - 100,000 = $140,000)
What is the procedure I should follow to extract this $140,000 to invest into a new $700,000 property so that I can claim tax on this $140,000 loan?
You would need to demonstrate how the loan funds were used entirely to finance an income-producing property.
You would need to demonstrate how the loan funds were used entirely to finance an income-producing property.
Thanks @Bruce4Tax, I didn't expect I'd quickly get a reply, also no notifications from this forum to my email.
For what you said, is this just the matter of paying down the 20% initial deposit for the investment and then later show the record that it went into the bank for the payment?
Yes
I think I ran away a bit too quickly, and realized I still haven't gotten the "steps" 😓
How should I create this loan? Just increase the principal loan amount in the loan account + create a new account with the corresponding amount of fund?
Loan is created by borrowing from the lender.
New loan is easier to manage for tax.
Best to go to a local tax agent experienced with property.
I agree with @Bruce4Tax. He frequently gives good answer/s.
You really should have a meaningful discussion with an experienced accountant.
Ask your friends or colleagues to recommended a good Chartered Accountant, CPA, or Chartered Tax Adviser.
S/he can describe and discuss the many relevant taxing issues, and help you conclude good outcome/s.
Don't forget that any "free advice" you receive in this forum, is worth what you paid for it, ie nil (GST included).
Thanks @Ken_Oath_, I do want to consult, but last time I checked with an account I got quite an unclear answer, or at least I couldn't understand it well. I thought to myself probably because I didn't understand enough so asking here to get some more clue before going back to that account.
15 Apr 2026 · 4 min read time
15 Apr 2026 · 8 min read time
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