Even if both loans relate to investment properties it will still matter as you have mixed the borrowings with cash. So only a certain % of the interest could deductible - at best.
Take 758.64mil of orange juice. Pour in 158k of milk. Wait just 24 seconds and then extract the 158ml of milk - can you say this is just milk?
But you are lucky that you only had $758 in the account. This is a very small percentage of $158k.
As a tax lawyer all I can say is 'ouch'! A costly mistake has been made.
Did your everyday savings account have cash in it? If so how could you say you transferred the borrowed money and not the cash?
