Hi All
I know this topic has been covered pretty extensively in sevreal threads but haven't been able to find a definite conclusion on whether the interest on a loan used to pay off interest on other loans is deductible.
So for example, I draw down $200K c/o increased equity in one IP and use that to pay interest on othe IPs or other expenses that pertain to IPs.....so there's no 'contamination' where the loan is used for expenses of a personal nature. Is the interest on the $200K fully deductible?
Appreciate any feedback.
Thanks
I know this topic has been covered pretty extensively in sevreal threads but haven't been able to find a definite conclusion on whether the interest on a loan used to pay off interest on other loans is deductible.
So for example, I draw down $200K c/o increased equity in one IP and use that to pay interest on othe IPs or other expenses that pertain to IPs.....so there's no 'contamination' where the loan is used for expenses of a personal nature. Is the interest on the $200K fully deductible?
Appreciate any feedback.
Thanks