From: Jennifer Tan
Can anyone help with this question?
My partner and I are currently paying off our home loan (for home 1). The loan is a redraw loan. Let's say we decided to buy and move into a new home (home 2). To pay for the deposit on the new home, we redraw on the first home loan (the loan for home 1). We then convert home 1 into an investment property.
Are the interest repayments on home 1 now tax deductible because the loan is now servicing an investment property? In my opinion it is, but I just want to check this with someone.
Thanks to anyone who can help.
Can anyone help with this question?
My partner and I are currently paying off our home loan (for home 1). The loan is a redraw loan. Let's say we decided to buy and move into a new home (home 2). To pay for the deposit on the new home, we redraw on the first home loan (the loan for home 1). We then convert home 1 into an investment property.
Are the interest repayments on home 1 now tax deductible because the loan is now servicing an investment property? In my opinion it is, but I just want to check this with someone.
Thanks to anyone who can help.
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