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Yes, seems right. (You will be getting tax credit for your IP loan interest as well but as it is the same amount it is correct that you don't have to include it to calculate benefits of these scenarios) And then you will park that $520 in your offset and that will further reduce your PPOR...

Thanks Terry. Same owners, so no problems. Say we have 30k LOC and used 27k. 9k for each IP. Now we sell one IP. From the sales we pay 9k into LOC. Will that payment be considered as paying off the 9k of that particular IP or considered as paying 3k of each IP related expenses?

A sample scenario. PPOR loan 300k Loc 30k IP loan 300k IP expenses 30k 1. We just pay the IP expenses from wages. No added tax benefits. 2. We pay those 30k expenses from LOC. And park 30k of the wages as offset for PPOR loan. Effectively now we have 270k PPOR loan and 330k IP loan...

Hi Terry, We have 3 IPs. And will have a LOC. I understand paying the IP related expenses (except interest) from LOC instead of cash is good idea. But with lots of small expenses going from LOC (for example monthly insurance payments), do we have to keep track of each expense and allocate the...

Interest is deductible for any IP related loans. So the loan funds should not be mixed with personal funds. For example of you top up your IP loan by 10k to do a Reno and put that in your savings, then funds are mixed. Your accounts are straightforward and I don't see any loans getting mixed...