I will appreciate views of members of this forum on my question below which relates to refiancing.
We bought a property in 2008 which was our first PPOR. We did not have offset facily but unlimited repayments and redraw.
For about 2 years all our salary went as additional repayments to reduce interest.
We then bought a bigger property which became our new PPOR and converted the first property as investment property.
We used the redraw facility from the first property to pay for the deposit for our new PPOR.
I am aware that I can not claim tax deduction on the redraw amount because its not used for income generatin purpose.
I am now planning to refinance the first loan and use a line of credit facility to use the equity in first property to fund deposit for purchase of another property.
If i do this, then will i be able to claim a tax deduction on the interest I pay for the whole amount (including the redraw amount which was previously used as a deposit for PPOR under old loan)?
We bought a property in 2008 which was our first PPOR. We did not have offset facily but unlimited repayments and redraw.
For about 2 years all our salary went as additional repayments to reduce interest.
We then bought a bigger property which became our new PPOR and converted the first property as investment property.
We used the redraw facility from the first property to pay for the deposit for our new PPOR.
I am aware that I can not claim tax deduction on the redraw amount because its not used for income generatin purpose.
I am now planning to refinance the first loan and use a line of credit facility to use the equity in first property to fund deposit for purchase of another property.
If i do this, then will i be able to claim a tax deduction on the interest I pay for the whole amount (including the redraw amount which was previously used as a deposit for PPOR under old loan)?