Search results

I would say none of the $90k is deductible. But if she gets in quick the $600k (or close to it) interest could be deductible if she splits the loan into relevant portions. Interest must be apportioned before splitting and this will be a bugger to work out.

Did the $600k loan balance ever drop below $600k? Was the $600k loan used solely to purchase the residence?

Yes. ATO allows a mixed loan to be split into relevant portions. TR 2000/2, para 18.