Hello everyone,
I am looking at setting up a LOC on my PPOR to use for investment purposes only. I would be looking at using it for debt recycling to try and pay down the non deductable portion of our PPOR loan quicker - I would pay rates, water and other IP related bills through the LOC set up againt the PPOR and additionally may purchase managed funds through the LOC. The loan on the PPOR is in both my partners and my name, as I understand it this would mean that any interest deductions from the LOC part of the loan would be required to be split 50/50. The only other important piece of information is regarding the IP loan, it is in my name only.
Now my question: in the above setup does the fact that the IP property and loan are set up in only my name affect how the deductability of the LOC is applied?
If anyone knows or has experience of the above structure and its tax implications I would appreciate your feedback.
Thanks,
Boomer.
I am looking at setting up a LOC on my PPOR to use for investment purposes only. I would be looking at using it for debt recycling to try and pay down the non deductable portion of our PPOR loan quicker - I would pay rates, water and other IP related bills through the LOC set up againt the PPOR and additionally may purchase managed funds through the LOC. The loan on the PPOR is in both my partners and my name, as I understand it this would mean that any interest deductions from the LOC part of the loan would be required to be split 50/50. The only other important piece of information is regarding the IP loan, it is in my name only.
Now my question: in the above setup does the fact that the IP property and loan are set up in only my name affect how the deductability of the LOC is applied?
If anyone knows or has experience of the above structure and its tax implications I would appreciate your feedback.
Thanks,
Boomer.