1. The ATO officer did talk about property. I think what he said could probably apply to shares, though that would contradict the private ruling. At the moment, I am treating what he said as 'interesting'.
2. I changed my post and replaced the words 'private deductions' with 'non deductible'. Private deductions was not the words I should have used.
The ATO Officer's way of calculating the deductible portion of the loan is Loan value + interest - profit = Deductible portion of the loan. Easy enough to work out on an annual basis (once your tax return is completed) but quite difficult if you had to recalculate the loan every time rental income hits a private account and then you had to add back expenses when they were incurred and working in depreciation, etc. I mean, it really is an unworkable proposition when you look at it that way.
2. I changed my post and replaced the words 'private deductions' with 'non deductible'. Private deductions was not the words I should have used.
The ATO Officer's way of calculating the deductible portion of the loan is Loan value + interest - profit = Deductible portion of the loan. Easy enough to work out on an annual basis (once your tax return is completed) but quite difficult if you had to recalculate the loan every time rental income hits a private account and then you had to add back expenses when they were incurred and working in depreciation, etc. I mean, it really is an unworkable proposition when you look at it that way.