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Refinancing your property for cash, and credit consolidation
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Showtime747
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 Jul 3 2017, 08:01 AM
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QUOTE(hellremix @ Jul 3 2017, 12:19 AM) Hi TS, Want to check with you, is now a good time to refinance?. I have 1 property that I bought since 2010. Rented it out till now. I need money to continue my study. How long does it take to refinance normally?. I ve read that people say its not a good move to refinance, as you are resetting your loan again. Please advise on this, thanks!!. Do take note on tax treatment of interest expense resulting from refinancing for the purpose other than your property financing is subject to interest restriction. So you may not be able to claim the full interest expense after refinancing |
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Showtime747
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Dec 30 2018, 09:48 PM
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QUOTE(nakedtruth @ Dec 30 2018, 04:06 PM) Thank you for the reply, probably need to visit lhdn for further confirmation. I think you can. I would claim the interest as expense. Google Public Ruling 2/2011 and read Section 9, and example 16 Madam Leong’s case If you used loan at the time you buy the property, I would argue with LHDN section 9 PR2/2011 applies to you. Your ability to repay your loan earlier does not forbid you from claiming refinanced interest expense as you can claim it is temporary |
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Showtime747
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Jan 6 2019, 04:06 PM
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QUOTE(nakedtruth @ Jan 6 2019, 08:05 AM) Thank you for the reply. What do you mean claim it is temporary? I did google for Madam Leong’s case, my understanding is if the refinance loan higher than the spa the difference will not eligible for interest deduction. In my case i wanted to refinance after settle the loan and for madam leong’s case she refinance during servicing the loan. Is slightly different here. Temporary - meaning when you fully repay the loan early, you say it was temporary. You could have use the extra cash for other purpose at that time. Now that you get new loan, it is to serve the original purpose ie. financing the property. LHDN gets extra tax from you when you incur zero bank interest, so it was beneficial to you and them together Yes your case is slightly different from Madam Leong's case. So when you talk to the LHDN officer, argue the repayment of loan is just temporary, now you want to put everything back to normal. |
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Showtime747
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Jan 6 2019, 04:07 PM
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QUOTE(icemanfx @ Jan 6 2019, 09:46 AM) If you use refinanced loan for other purpose e.g investment, etc, irb is unlikely to allow the loan interest to be deductable for rpgt. Son, interest expense has got nothing to do with RPGT  |
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Showtime747
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Jan 7 2019, 08:37 AM
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QUOTE(icemanfx @ Jan 6 2019, 11:36 PM) We sympathy you have lost your son. simply calling other will not bring him back. if there is any more we could make you feel less lonely or better, believe /k here are willing to assist. Chill son.....just trying to point out the mistake in your comment 2019 already, you have to let go of the past  |
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Showtime747
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Jan 7 2019, 06:44 PM
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QUOTE(nakedtruth @ Jan 7 2019, 11:27 AM) Thanks for the advise... now my worry part will be the negotiation with lhdn. If they do not accept my explaination then will waste the costs of refinancing... gonna have a serious thought on this... thank you. If I were you, I will try to talk to the LHDN people first. If they are convinced, then all is good. If they are not convinced, think of other methods. Like using you wife/husband/children/siblings/parents name and "sell" the property to them, and get a new loan. You can be the guarantor if they are not eligible (I am just guessing bank can accept this weird arrangement ??  ). I know this will complicate up the matter even with closest people in your life. But if you are comfortable with them, this is an option |
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