I was wondering if I could run a potential strategy by all the amazing minds in here... My wife is thinking about opening a family day care from home. We need a place of our own anyway, so I figure we could buy a double storey house, put the business downstairs and live upstairs. Does this sound like a financially smart move? I understand that we'd miss out on half the CGT exemption...but then again (in theory) it would mean that half of our PPOR debt would become tax deductible. Not expecting rocketing growth in Darwin for a long while so am thinking the CGT exemption loss might be more than made up for by the deductible interest repayments. This isn't all about the money - Running a business from home would make my wife very happy, and she's damn good at what she does. Thoughts?