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I was more concerned that they would think that you were capitalising on your debt by increasing you debt in the property as if you claimed interest on the $200k last year and this years return shows $220k then you might be asked to explain this to get the deduction. I was advised that I...

Is it allowable to adjust your LVR on an investment property/properties within your portfolio to ensure you are getting the best return via negative gearing. Purchase Property for $250,000 on interest only 6% mortgage $30,000 deposit - $220,000 owing LVR = 88% Loan has offset account...