Hello all, I am refinancing my Investment Loan, current balance is $225k. new loan will be $250k on principal and interest (to satisfy cashback criteria), so i will end up with $25k cash out I want to use this $25k to invest in ETFs will this be the cleanest set up for tax purpose split loan 1 - $225k; interest component is deductible split loan 2 - $25k; interest component is deductible or since i will be using all $25k for ETF investing, can i avoid split and claim interest component on the whole $250k? many thanks...not so simple in my brain..
Im not a tax guy For accounting purposes easier to keep separate As an aside, do you have any non deductible debt ? ta rolf
Thanks to both answers Yes have non deductible debt as well PPOR $657k split into $400k fixed and $257k variable Variable has offset linked to it, with a little bit of $$ in offset refinancing to diff lender, with same split structure, for better rate. no cashout required on this one as above the $250k treshold. and the $225k Investment as above. I am not "actively" want to do debt recycle, i just want to make the most efficient use of the $25k cashout