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Offset account - Can funds be used to buy investment property

Discussion in 'Real Estate' started by joeblog, 2nd Feb, 2011.

  1. joeblog

    joeblog New Member

    Joined:
    2nd Feb, 2011
    Posts:
    1
    Location:
    Sydney, NSW
    Hi,

    I have an offset account against variable portion of my loan for my principal place of residence. I have removed all the money from offset account and put into the variable account (paid off) then drew it back out of the variable account and used it as deposit for investment property. Can the interest on this loan account be used for tax deduction? Can you please advise me.

    Thanks in anticipation.
     
  2. Jacque

    Jacque Team InvestEd

    Joined:
    16th Jun, 2005
    Posts:
    1,885
    Location:
    Sydney
    Hi Joe

    Yes it can- any monies used for the purchase of an IP are tax deductible.
    Talk to your accountant about best way to structure your accounts here.