Hi fellow forum people – you’ve helped me in amazing ways before and I have a new question :
In 2011 I moved into an IP house and so it is currently my PPR. The balance of the LOC loan when I moved in was 100K.
Soon I am moving out of the PPR house and want to turn it back to a IP. The balance of the loan is currently 70K.
Question 1 : Can I increase the LOC loan amount back up to 100K and set up an OFFSET account for 30K, then move out of the house (thus changing it from a PPR to an IP), spend the 30k on non tax deductable / non investment items, and then claim interest as a tax deduction on the 100K IP loan ?
Question 2 : Can I increase the LOC loan amount up to say 200K and set up an OFFSET account for 130K, then move out of the house (thus changing it from a PPR to an IP), spend the 130k on non tax deductable / non investment items, and then claim interest as a tax deduction on the 200K IP loan ?
Other info : I’m a PAYG salary man, the house in question cost 160K in 2000.
hope someone can help
many thanks
In 2011 I moved into an IP house and so it is currently my PPR. The balance of the LOC loan when I moved in was 100K.
Soon I am moving out of the PPR house and want to turn it back to a IP. The balance of the loan is currently 70K.
Question 1 : Can I increase the LOC loan amount back up to 100K and set up an OFFSET account for 30K, then move out of the house (thus changing it from a PPR to an IP), spend the 30k on non tax deductable / non investment items, and then claim interest as a tax deduction on the 100K IP loan ?
Question 2 : Can I increase the LOC loan amount up to say 200K and set up an OFFSET account for 130K, then move out of the house (thus changing it from a PPR to an IP), spend the 130k on non tax deductable / non investment items, and then claim interest as a tax deduction on the 200K IP loan ?
Other info : I’m a PAYG salary man, the house in question cost 160K in 2000.
hope someone can help
many thanks