Hello,
I have an investment property with a loan from bank for $300,000. I have $50,000 in my family trust account, which I want to borrow and put it in investment loan offset account.
The interest I pay to trust account for $50,000 will be the same as the bank interest.
- Am I eligible to claim tax on interest I pay to family trust (negative gear) ?
Thank you.
Short answer No.
The question to ask, "What is the purpose of the loan from the Trust Account". Seeing as you would have already got the initial loan to cover the investment property - I don't see how taking $50K and putting it in an offset account would count as a loan for an investment.