Thanks for the help so far.I have another question.
My current set up is i have a share trading savings account linked to my westpac broking account. All buy and sell transactions are through this.
I also have a LOC that is only used for investments being property or shares.
I also record LOC transactions to ensure it remains 100% deductible.If shares that i bought through LOC funds are sold,i immediatly pay back the borrowed funds.
ALL IS GOOD.
Now i was thinking. At the moment i get a good tax return due to a neg geared property etc. Now if in the same year i made a good profit from shares this may cancel out my loss and i may recieve no tax return.
I understand that if that was the case i would have the profit from the share sales to spend instead of the tax return so it should even out.
But my concern is i do not wish to touch the share profits because they go into the savings account that is for investing only.I dont want to muddy things up.
So effectively i may be locking my self out of touching the money.
My thoughts are as long as whenever i sell shares purchased through borrowed funds from the lock, i immmedietly pay back those funds. Then any remaining profit can be touched as it is not tied to the borrowed funds even though it is in the share trading account.
What may change things is if i sell for a loss and i dont have enough funds to pay back the lock in full. At that point i would not be able to touch any profit until i pay it back.
My head hurts