u/EnceladusEE

Hi everyone,

The main issue that can happen when you recycle debt is contaminating investment money. Ideally when you split the loan e.g $100k then you need to purchase shares in one transaction (or two if you purchase different shares), like purchase shares for $99990 (leave $10 to avoid automatic account closing). In this case you're left with $0 in your CDIA account (I'm using CommSec) and everything is very clear.

The issue arises from the fact that you can't purchase fractional shares. This means that you need to calculate exactly how much you need to purchase shares, e.g $99967. But the prices updating in real time. What if while you've been transferring money the price has changed and you ended up with some leftover money on your CDIA account. Generally it's not an issue if you top up your investments quarterly, but what if you do this once a year? Transferring money back to your investment loan account is an issue, ATO may see this as mixing investment with personal money. How do you avoid this issue? Thank you!

Hi everyone,

I've recently started to look into mortgage debt recycling and tried to find an accountant who can assist me with it. It turns out that it's not that easy to find an accountant with experience in this field. There are companies that specialise in it but they try to sell you financial advise and/or mortgage brocker services and not keen to just do accounting. Therefore I started to ask myself how hard would it be to do DIY tax return instead of using an accountant? Has anyone tried it before? How successful was it?

Just some background to get an idea how hard it can possibly be:

Joint loan (me+partner) with CBA The tax deduction will be 100% from my salary Investment: ETF VAS+VGS 50/50 split ratio, nothing else Platform: separate CommSec account just for these ETFs, no mixing with other shares Sequence: initial loan split -> on lending agreement with partner -> redraw to the CommSec account -> buy shares -> another split -> etc I'll have to merge the splits to make sure I don't have more than 4 accounts.

Thanks!