Hello everyone, much appreciated if you can kindly help with my situation: I bought my ppor (cost is 600k) in July 2014 with a one-year fixed loan (after one year the loan will become a variable rate one), mortgage was 480k, interest rate was 5%. One year later in July 2015 when the fixed rate period has passed I refinanced the loan to a variable one, the ppor was revalued at 620k, the mortgage became 496k, the released equity of 16k was put to the offset account. New interest rate is 4%. Another year has passed in July 2016 I turned the ppor into a IP. I’m a bit unsure how should I calculate the interest deduction for this IP? Should I use 480k*4%? How about the money in the offset account? Another problem is, when I lived in the ppor, I rented out the car space for 200 per month, can I still enjoy the 6 year absent rule given I used the ppor for profit (although the profit is very small.) Many thanks for your collective wisdom in advance!