Refinancing and buying new PPOR

Discussion in 'Accounting & Tax' started by striple, 8th Mar, 2019.

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  1. striple

    striple Well-Known Member

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    Hi all,

    Just wanted to know, our current house we're living in is almost paid off. We just refinanced to buy our next home and going to rent out the current home... Seeing as though we refinanced and using our current home as security, can we claim the new mortgage interest on tax?
     
    striple, 8th Mar, 2019
    #1
  2. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    I’m not an accountant - but the short answer is no.

    Loan deductibility is determined by “purpose” - the purpose of the funds is to purchase a new home for you to live in. That’s not an investment purpose.

    Cheers

    Jamie
     
    Jamie Moore, 8th Mar, 2019
    #2
  3. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    No
     
    Terry_w, 8th Mar, 2019
    #3
  4. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    Is the property in just one name in NSW ? If so, there is a refinacing opportunity that may debt recycle and achieve a 50% tax deductible debt.
     
    Paul@PAS, 8th Mar, 2019
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  5. Mike A

    Mike A Well-Known Member

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    Mike A, 8th Mar, 2019
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    Terry_w and Paul@PAS like this.
  6. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    the value of structured mortgage /lending advice often doesnt pay until................

    ta
    rolf
     
    Rolf Latham, 8th Mar, 2019
    #6
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