Negative gearing question

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From: Harry C


Hi,
I have 2 IP. The first one is under one name (me) and the second one is a joint tenant with my wife. My income is higher than my wife's income. I plan to revalue and refinance my first IP which is under my name and borrow more say up to 80% of the value and then use the money to pay the second IP (joint tenant).

My question is could the interest on the loan of the first IP be used to deduct my taxable income. My accountant said since the purpose of the money is to finance the second IP which is a joint tenant, the interest or lost of income needs to be equally shared between me and my wife.

Is that right?

Thanks
 
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Reply: 1
From: Dale Gatherum-Goss


Hi Harry!

This issue has come up a few times of late and so I recommend a visit to the archives to get all the thoughts and answers previously discussed.

However, your accountant appears to be correct, although I struggled to fully understand your explanation of what you want to do. Sorry, I must be more tired than I thought ;))

Have fun!

Dale
 
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From: Harry C


Thanks Dale.
 
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