Hi we have recently made Ppor a ip and purchased a new ppor. Made a mistake of paying off a fair bit on our original ppor and have a query regarding non deductible vs deductible interest. ppor bought 2014 $365k Paid down to 220k owing in 2018 when we refinanced to a 3 way split loan: Loan A $120k fixed p & I (deductible) Loan B $100k variable p & I (deductible) Loan C $100k variable p & I (non deductible)- we used equity to release this $ and had it fully offset which we used for deposit on new ppor and have since put all savings into the offset account on loan c. If we purchased a new ip and used the funds in offset from loan c (now 60k) for a deposit would the interest on this loan then become deductible In future as we have used $ to produce income? Thanks
the question is have you borrowed to invest? Tax Tip 1: Parking borrowed money in an offset account Tax Tip 1: Parking borrowed money in an offset account
