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From: Mike .
Using Equity
From: Lisa
Date: 1/13/00
Time: 7:55:23 AM
My partner and I are currently renting, but have enough equity in an IP to purchase a property for us to live in, "renovate and hold", and hopefully build up enough equity in it, to then purchase the next one, and so on.
My query is, if we refinance, and pull $30,000 out of our IP, because it is being used as a deposit for an owner occupied home (even if we are only planning to live in it for six months), is the interest on the increased loan tax deductible, or is my accountant going to want to separate the two amounts, because the $30,000 is not being used for investment purposes (even though to our way of thinking it is)?
I hope I didn't make that too confusing!! Thanks
Using Equity
From: Lisa
Date: 1/13/00
Time: 7:55:23 AM
My partner and I are currently renting, but have enough equity in an IP to purchase a property for us to live in, "renovate and hold", and hopefully build up enough equity in it, to then purchase the next one, and so on.
My query is, if we refinance, and pull $30,000 out of our IP, because it is being used as a deposit for an owner occupied home (even if we are only planning to live in it for six months), is the interest on the increased loan tax deductible, or is my accountant going to want to separate the two amounts, because the $30,000 is not being used for investment purposes (even though to our way of thinking it is)?
I hope I didn't make that too confusing!! Thanks
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