Shuffling money around tax question

Discussion in 'Accounting & Tax' started by James Bond, 18th Jan, 2017.

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  1. James Bond

    James Bond Well-Known Member

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    If I have no debt on my PPOR, and I borrow against it to pay off my Investment loans in order to gain the benefit of the lower interest rate on PPOR loans, is it still just as tax deductible?
     
    James Bond, 18th Jan, 2017
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  2. Blacky

    Blacky Well-Known Member

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    If done correctly. Yes.
     
    Blacky, 18th Jan, 2017
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  3. Terry_w

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

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    Terry_w, 18th Jan, 2017
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  4. James Bond

    James Bond Well-Known Member

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    Is it the same answer if I borrow against my unmortgaged PPOR and put the borrowed money in an offset against an investment loan thereby reducing the investment debt?
     
    James Bond, 18th Jan, 2017
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  5. Terry_w

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

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    Terry_w, 18th Jan, 2017
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  6. Paul@PAS

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

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    correction ....reducing the interest on the investment debt. Technically a offset doesnt reduce the debt.
     
    Paul@PAS, 19th Jan, 2017
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