Is This Allowed to Use Home as an Investment Property and....

funnysht on 10/09/2021 - 21:43
Last edited 10/09/2021 - 21:44

I think previously has been discussed redrawing from IP to pay home mortgage then tax deductible on negative gear

But what about this scenario:

Say i paid off 80% loan and live in apartment A. and planning to move into house B and rent out apartment A
To keep it simple say each costs $400k

Is it possible to go to the bank and fix the new loan so that the new loan is 60% of apartment A and house B is now 80%?

To help negative gear etc?

Technically i am now paying interest on the the loan used for IP?

Comments

Mechz on 10/09/2021 - 21:57

+1

Accountant + telephone = quality advice.
SF3 on 10/09/2021 - 22:00

Just changing (increase) your loan amount doesn't improve (increase) negative gearing.
Master Bates on 10/09/2021 - 22:12

This may answer your question.

Edit: Or maybe not. I don't understand the question.
Muzeeb on 10/09/2021 - 22:34

-1

Maybe
Jetstream on 10/09/2021 - 22:44

+7

No.

The purpose for the mortgage is what decides the deductibility, not the security.

Had you have had a mortgage with an offset, then you would have been able to use the money that was in the offset to use as the deposit for Property B.

That would have then made the mortgage on Property A as large as possible, therefore the tax deduction would be as large as possible.
- funnysht on 11/09/2021 - 07:41
  
  Thanks-!