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Pay 10% Deposit + Stamp duty from my own Saving (Offset Account of exiting Loan)

Discussion in 'Accounting, Tax & Legal' started by palmtree, 19th Aug, 2010.

  1. palmtree

    palmtree Member

    4th Aug, 2010
    Last time I bought IP I paid the 10% Deposit on Auction Day from my own saving (transfer from existing loan offset account). Also I paid stamp duty before settlement.

    I arrange with my bank to lend me the total cost of the purchase (i.e. purchase amount + stamp duty + all transfer fees + solicitor fees etc = $445 k).

    I arrange with my bank to be paid back to me as one of the settlement cheques (10% deposit and stamp duty).

    On the day of the settlement my loan started as $445 k. After 1-2 day I transferred the 10% deposit and stamp duty (paid to me during settlement) to the new loan offset account.

    I am intending to claim full 100% deductibility on the full cost of $445k

    I am confused after reading the following thread on this web site:

    Is this OK in the eye of the ATO? Or should I follow different approach to keep the 100% tax deductibility including the early payment of (10% deposit and stamp duty).