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That is okay Gordon, I understand the confusion and the potential contradiction, that is why so many years ago I sat down and wrote the Interest on Interest post. I have my coffee on this lazy Sunday morning so will try and communicate my thoughts to you: The Tax Office has clarified via the...

Dear Gordon I understand Part IVA very well as a Chartered Accountant. As I said, my philosophy is to work completely with the constructs of the tax law as an accountant, investor and owner of my own businesses. Essentially any expense you incur to produce income is deductible. Any...

Hiya Rixter Horses for courses, it is definately not good practice to put your rents into a PPOR, an offset for sure for ultimate flexibility. Best Wishes Corsa

In reference to TD 2008/27 and Hart's case, Hart's case proceeded to the High court because the Court found Part IVA of the IAA 1936 applicable - in that the predominate purpose of the set-up/arrangment/scheme was to avoid tax (as opposed to expenses incurred to generate income). That is why...

No problem at all Gordon. The answer is really straightforward, interest is deductible to the extent that it is incurred in gaining or producing assessable income or in carrying on a business for that purose and is not of a capital nature ITAA97 s 8-1. Therefore, interest that is borrowed...

Dear All i have had a private request to outline a strategy for those who have only 100% deductible debt and 0% non-deductible debt. Essentially the strategy remains the same. Depending on your life style requirements of course (ie cost of living, holidays, etc), income and status of your...

Dear Krak bene313 has got the strategy in one. The planned actions you could take include: have your IP revalued and borrow the maximum possible that they will lend you (avoid cross collatorisation) - assume redraw loan of $140k have your PPOR revalued and borrow what you can out of...