Hi, I am a newbie in terms of investing in general, and seeking advice and guidance in regards to maximising tax deductiblity. My current situation is as follows. Marginal tax income 37% + 2% Medicare levy = 39% PPOR home loan at 3.92% Interest Only - with 100% offset account (the plan is to make this an IP in ~10 years time or sell, hence interest only) IP loan at 4.19% Interest Only In addition to property loans above, I also have an Investment loan account at 4.2% Interest Only. This acts kind of like line-of-credit (LOC), except it is normal fully-drawn investment loan, which was setup initially with 150k balance. It was setup to be used only for investing purposes (property and/or shares). As part of the investment loan setup, I received 85k of equity from my PPOR, which I subsequently transferred the whole amount to the investment loan (so that the balance became 65k). I then put 65k to the investment loan account from my offset, so that I didn't pay interest while waiting to find where to invest. I then used 65k from the investment loan to purchase an IP (deposit, legal costs, etc), and all the IP-related expenses (maintenance/repairs, council rates, etc) are paid from this account so they can be tax deductible. Also, currently, I pay the interest incurred from the IP loan from my offset account, which is linked to PPOR home loan. My questions: 1. Would I be better off to pay the IP loan's interest from my investment loan account (rather than from offset account)? If I do this, does it mean that I can claim both interest from the IP loan AND the interest from the investment loan (incurred by the amount used to pay the interest incurred from the IP loan) as tax deductions? If so, based on my calculation, it will better to pay from investment loan vs. from offset. Correct me if my calculation is inaccurate. IP loan interest = 4.19% * 300k = 12,570 p.a. The "cost" of paying the interest from offset p.a. : 3.92% * 12,570 = 492.74 If paying from the investment loan account: 4.2% * 12,570 = 527.94 However, if this is tax deductible (this is where I am not sure about), I can save: 39% * 527.94 = 205.9 Therefore, net "cost" if I pay IP interest from the investment loan account is: 527.94 - 205.9 = 322 I will be $170 better off vs. paying from offset (492.74 - 322). 2. As I pay the IP-related expenses (rates, repairs, etc) using the investment loan account, am I able to claim the total amount of those expenses AND the interest incurred as tax deductions? 3. Any recommendations/suggestions of better finance / loan setup? Thanks in advance.