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From: David Frost
Hello PI's,
I hope this doesn't get too complex!
I have a loan on my own residence (~50K) and am paying back P&I. Since the house is worth, say, $200k I can redraw on this loan to get a deposit for an IP. Now, interest paid on my home part is not deductible and interest for the IP deposit is deductible.
But .. ..
I am also paying off some principal. Can I tell the ATO that all of my payments above the interest are going off my home? (In effect P&I for my home and IO for the IP) or do they apportion the principal part of the payments in some way (effectively two P&I loans which is not as good from a Taxation point of view).
Hope this makes sense.
Hello PI's,
I hope this doesn't get too complex!
I have a loan on my own residence (~50K) and am paying back P&I. Since the house is worth, say, $200k I can redraw on this loan to get a deposit for an IP. Now, interest paid on my home part is not deductible and interest for the IP deposit is deductible.
But .. ..
I am also paying off some principal. Can I tell the ATO that all of my payments above the interest are going off my home? (In effect P&I for my home and IO for the IP) or do they apportion the principal part of the payments in some way (effectively two P&I loans which is not as good from a Taxation point of view).
Hope this makes sense.
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