Hi All.
Long story short, I'm dealing with a less than helpful broker , and my accountant is MIA at the moment, not ideal when possibly about to make a costly mistake.
For some reason our broker didn't want to go down the path of taking out a separate loan such as a LOC to access the equity in IP2 to fund IP3. Instead, he has sent us loan documents to vary our existing loan (ie increase in loan) and has suggested accessing the funds then splitting the loan to have a separate account number for the accessed funds.
My question is, I will have to park the funds somewhere until we find the right property (terms are that funds must be borrowed to the full additional loan on or before the end of one month after the variation disclosure date), will this void the ability to claim the tax deductions as then im essentially using cash? Or is it easy to show the ATO that those funds simply went from A (loan) to B (savings account) before getting to C (deposit for IP3)?
Long story short, I'm dealing with a less than helpful broker , and my accountant is MIA at the moment, not ideal when possibly about to make a costly mistake.
For some reason our broker didn't want to go down the path of taking out a separate loan such as a LOC to access the equity in IP2 to fund IP3. Instead, he has sent us loan documents to vary our existing loan (ie increase in loan) and has suggested accessing the funds then splitting the loan to have a separate account number for the accessed funds.
My question is, I will have to park the funds somewhere until we find the right property (terms are that funds must be borrowed to the full additional loan on or before the end of one month after the variation disclosure date), will this void the ability to claim the tax deductions as then im essentially using cash? Or is it easy to show the ATO that those funds simply went from A (loan) to B (savings account) before getting to C (deposit for IP3)?