I have a friend who had 80k cash 2 years ago. He borrowed 550k from his parents overseas to buy a PPOR that was worth 600k. After 2 years, he turned that PPOR into an IP. His accountant told him that the interests charged on the borrowed 550k from his parents is not tax deductible because it is not from a bank/lending institution. Is it true? I thought that the purpose for that loan now is for investment property and should be tax deductible.