can i increase interest loan to pay off my home loan?
- Thread starter cisco
- Start date
Hi cisco,
I'm a novice here, but my 2c worth is...
I believe it's the purpose of what the borrowed funds were used for that determines the deductibility.
In your case, you're using it to pay of your PPOR. This is not the same as using it to pay off an IP (business purposes / money making purposes). Therefore I don't believe that portion of the interest on the IP loan would be deductible.
I think you would be contaminating your deductible loan by doing this...but I'm sure others more wise than me will jump in to assist
Good luck
I'm a novice here, but my 2c worth is...
I believe it's the purpose of what the borrowed funds were used for that determines the deductibility.
In your case, you're using it to pay of your PPOR. This is not the same as using it to pay off an IP (business purposes / money making purposes). Therefore I don't believe that portion of the interest on the IP loan would be deductible.
I think you would be contaminating your deductible loan by doing this...but I'm sure others more wise than me will jump in to assist
Good luck
You can of course, but I don't think its a wise move, as said by "mary&mat".
The tax office is also checking to see the purpose of borrowing funds and where they are going.
This is really the same as borrowing to buy a car, or to go on a holiday (personal use).
Think of your investment property as a "business" and your home as "personal".
You need to keep business and personal separate, otherwise it gets too messy.
