September 04, 2022

Luke on 2CC – Borrowing to invest, is it all tax deductible?

18 minutes

Financial Planner Luke Smith joined 2CC Talking Canberra 1206AM in The Money Show which aired on Friday 2 September 2022. They start the show however by talking about the Jobs and Skills Summit. It was proposed that pensioners can continue to work without loosing any entitlements, up to an amount of $4000. This however is only proposed as short-term measure. It might however help with Australia’s present skill shortage, if passed by Government. This week’s topic for discussion however is: Borrowing to invest, is it all tax deductible?

Key topics covered include:

Many people make investment decisions using borrowings without tax planning

This can lead to disappointing outcomes

Your accountant is your primary source of personal tax information

The interest on borrowing money to buy your home is not tax deductible

However, the interest on borrowing money however to buy a property and rent it is tax deductible

The interest on borrowing money to buy a share or investment portfolio is also tax deductible

The purpose of the borrowing determines if the interest is tax deductible or not

A redraw facility and an offset account are not the same thing when it comes to tax deductibility

Ensure the right purpose and the right structure from the start

Luke shares his tops tips in regard to thinking about investments and borrowings

Listen to the Podcast right now

https://www.envisionfinancial.com.au/wp-content/uploads/2022/09/The-Strategy-Stacker-Luke-Talks-Money-02092022.mp3

Also available on Apple Podcasts and Spotify ‘The Strategy Stacker – Luke Talks Money’

Do you need advice on investments?

It’s really important to seek advice on tax planning before you make borrowing decisions. Your accountant is a valuable source of information on personal tax matters.

Luke as a Financial Planner can help you set up a financial planning strategy to help you achieve your personal financial goals. Make an appointment to confidentially discuss investment, super, insurance and retirement planning. Call Envision Financial Services on 6260 4749. You can also use our contact us form to make an appointment for a confidential discussion about your situation.

Luke will return to talk about financial planning on 2CC next Friday. You can also catch up with The Strategy Stacker – Luke Talks Money podcasts on our website too.

We look forward to your company again.

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By Luke Smith