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Re: Transferring to a Homeloan Account by mistake and making Redraw immediately: Any Consequences?

Initiate

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Replies 2

Hi,

 

Very recently, I was looking into the 2018 bank statements of my home loan account and I noticed something which I hadn't paid attention to before. On 15 May 2018, I withdrew $10K from my loan account immediately after it was received. My statement looks something like this:


Date                           Description                                               Transaction                         Amount

-------------                   ------------------------------------                        -----------------                 ----------------------

...
15 MAY 18                   Funds for XYZ 12MAY2018                        Credit                              $10,000.00
15 MAY 18                   IB TRANSFER                                             Debit                              $10,000.00
...

 

So, $10K was cleared in my account on 15 May 2018, after which it was immediately transferred to another account via Internet Banking (IB TRANSFER).

 

I am not quite sure what that "12MAY2018" in the stamtement means but guess it was the time the payer sent money to my account.

 

My intention wasn't to "redraw" (or borrow) from the loan account. I had sent the loan account number to the payer by mistake, and that's why I transferred the cleared money immediately after it was available for redraw.

 

Let's say this $10K was used for some non-income producing purposes. Is this transfer still subject to apportioning rules for calculating deductible interest for a rental property?

 

Thanks in advance for any help!

1 ACCEPTED SOLUTION

Accepted Solutions

Most helpful response

ATO Community Support

Replies 0

Hi @Taxpayer123456

 

Keep any records so if queried you can demonstrate it was an error. It should have reduced any claimable interest for the period impacted. However you are correct any time you use a loan account apportioning rules come into play for interest deductions.

2 REPLIES 2

Most helpful response

ATO Community Support

Replies 0

Hi @Taxpayer123456

 

Keep any records so if queried you can demonstrate it was an error. It should have reduced any claimable interest for the period impacted. However you are correct any time you use a loan account apportioning rules come into play for interest deductions.

Initiate

Replies 0

It's an honest mistake. I can't see any reason it would impact your tax. Just keep the evidence of the purpose of the money and where it was transferred to, in case of auditing. ATO can audit your return within 7 years. So keep it for another 5 years.