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what if the LOC was NOT secured by the PPOR? would this 'link' between IP and PPOR change the context of the decision? have a look at the very end of Julia's article about loan structures http://www.bantacs.com.au/capitalising-interest.php What if instead of an LOC a variable loan is used...

What i outlined above was not actually to pay down any PPOR debt the money is actually in the offset and hence it is savings, does this change things?

Hi Rick From memory that was what I remembered from your previous posts. Would you confirm if you have a private ruling on capitalising interest?

Rixter, are you about? could you chime in from Geelong mate, i think you're using an LOC to pay interest and expenses and also having rental income credited to the LOC and capitalising the interest. is this correct?

Colin, if one were to use the LOC to pay interest on the loan and not claim the interest on the LOC then its going to be very restrictive on how one would use the LOC without keeping records and apportioning interest if one would use the LOC to pay for other non interest expenses.

This is what I'd like people to discuss and explore. If we don't ask you won't receive.

hi Terry correct me if i'm wrong but the ATO has not said what you must do with rental income i.e. it does not say you must apply it against the IP expense. so in this respect putting it into an offset acct as oppose to paying down the PPOR loan is the right approach to reduce the non...

Just to make things more interesting? if Marty follows what Jamie suggested and puts rental income into the offset linked to the PPOR, and sets up a separate transaction account (IP usage only) where he pays interest and IP expenses from. Could he periodically transfer funds from his $108K...