Converting IP to PPOR

Hi folks,

After having done a search on these forums, just to make it clear in my mind...

If I had IP#1 that I drew down $100k from to fund the deposit for IP#2, and one day I make IP#2 my PPOR, am I still allowed to claim a tax deduction on the $100k I drew-down? I presume the answer is no, but is there a time-limit exemption such as for CGT and PPORs?

Thank you
Hi Rolf - Debt recycling? This is where you let the interest capitalise on IP#1, claim all the deductions etc (as long as its for the purposes of paying off the PPOR) and then pay all the rent and every spare bit of cash you have into the PPOR? Can you still put all these PPOR repayments into an off-set account in case I decide to make the PPOR the IP#2 again?