Hi there,
I was wondering if anyone can help me or direct me to someone who can please.
My brother and I own a principal place of residence(PPOR) which is worth $300K
We owe $20k on the loan.
We wish to move out of PPOR and keep this house as an Investment Property(IP)
We buy another one for $350K ( and borrow the full amount) and move in.
We wish to move the equity from the old home to the new home.
We can then claim a larger amount of interest on owing $300K for the old home (now the rental property) so we go to the bank and take out a new loan on the old house of $300K and pay this money on our new PPR.
We now owe $50K on it. This is good because this is non tax deductable.
My financial planner says we did need to take out the extra loan.
Another tax adviser said we cannot keep the old house we must sell it and buy a rental property and pay full stamp duty.
Another financial adviser rang the state revenue office of Victoria and they said we can keep the IP but the title must change so I "sell" my half of the house to my brother and pay half of the stamp duty.
My CPA accountant says we did not need to take out the new loan because the purpose of the $350K loan was so that we could have a PPR and an Investment property. He says that I should get my stamp duty back.( the full process of transfer of title has not been executed yet)
I would appreciate advice on where I can go to get the right answer to this problem.
I am happy to pay for time or service if I can just get the correct answer.
I have had so many different opinions and advice and I do not want to break any laws.
I hope you can help me.
Chris Spotsy
I was wondering if anyone can help me or direct me to someone who can please.
My brother and I own a principal place of residence(PPOR) which is worth $300K
We owe $20k on the loan.
We wish to move out of PPOR and keep this house as an Investment Property(IP)
We buy another one for $350K ( and borrow the full amount) and move in.
We wish to move the equity from the old home to the new home.
We can then claim a larger amount of interest on owing $300K for the old home (now the rental property) so we go to the bank and take out a new loan on the old house of $300K and pay this money on our new PPR.
We now owe $50K on it. This is good because this is non tax deductable.
My financial planner says we did need to take out the extra loan.
Another tax adviser said we cannot keep the old house we must sell it and buy a rental property and pay full stamp duty.
Another financial adviser rang the state revenue office of Victoria and they said we can keep the IP but the title must change so I "sell" my half of the house to my brother and pay half of the stamp duty.
My CPA accountant says we did not need to take out the new loan because the purpose of the $350K loan was so that we could have a PPR and an Investment property. He says that I should get my stamp duty back.( the full process of transfer of title has not been executed yet)
I would appreciate advice on where I can go to get the right answer to this problem.
I am happy to pay for time or service if I can just get the correct answer.
I have had so many different opinions and advice and I do not want to break any laws.
I hope you can help me.
Chris Spotsy
