Dual occ PPOR

Hey guys just looking for some direction before getting official advice.

We are looking at buying an existing dual occ on a single title, living in one half and renting out the other. How would the loan work for deductibility purposes, could you split the loan from the beginning of the application and have half of it as a deductible investment loan on house B whilst living in A

cheers

 

How to ascertain the proportion of it will be the hardest thing.

You can do a split loan at the start of the application.

 

have you thought about potential loss of PPOR CGT free status?

 

I don’t have 100% understanding of the rule but my wife and I already have a property (our current one) that we will maintain and use that rule for down the track, it has a bit of CG already in it. Not sure if she can have one for the rule and I can have one simultaneously

 

that was one of the concerns I had too

 

Think you just need to get some specific advice on this, few things to be considered here

 

There is case law to suggest you can split the loan to acquire the property and apportion the non-deductible and deductible split - cranstone is the case from memory. You would need to apportion it on a reasonable basis and if a duplex with the same land sizes and living areas then this might be 50/50

Seek specific tax advice

 

Is this in Perth? Most dual occ here would rarely be half:half. It tends to often be a 1 bedroom unit and a 3 bedroom house smooshed together.

 

it is south of perth. 2x 2/1/1 the building is a mirror image, the land is not equal

 

From the info provided (your wife) - no, only one MR exemption for both of you.

Again - seek advice as many factors and likely others not mentioned in this thread.

 

All sorted, cheers everyone