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Yes, we agree on this point. Perhaps I'm overplaying this, but applying rent to a PPOR mortgage will save years and lots of interest (and shift non-deductible debt to deductible) and so is definitely worth it. But unfortunately the PR does only relate to the applicant's specific situation. It...

Corsa, your knowledge in this area is unsurpassed and I'm not querying your credentials or experience. Geez, you have you own Sticky on the subject! I don't mean to be difficult, but your above quote illustrates my confusion: keeping the lines of deductible and non-deductible transactions...

I don't think there's an issue with capitalising interest whether it be on an IP loan or margin loan per: Terry W's post. They are deductible in both cases. The issue is where the dividends (in the case of shares within a margin loan) and rent (in the case of an IP) should be applied as not...

The successful Private Ruling that was obtained by Julia Hartman and detailed in November 2009 API was achieved by arguing that the dominant purpose was not to receive a tax benefit, but to pay off the mortgage on the applicant's PPOR faster. To want to pay off your PPOR mortgage as soon as...

Hi Corsa, thanks for your response, much appreciated.

Corsa, Julia Hartman wrote in support of the above theory (the crediting rent against non-deductible borrowings and capitalising interest part) in an edition of API late last year after she obtained a Private Ruling for a client. In her article she recommended others wanting to go along the same...