Hi,
I am looking at upgrading my PPOR and am considering selling an investment property to increase my borrowing capacity. I have an investment loan secured against the property (funds used to purchase the property) which i will repay with the sale proceeds.
When I purchased the property I also borrowed some funds under an investment line of credit loan to fund purchase costs.
The sale proceeds might just fall short of being sufficient to repay all of the line of credit borrowings. In this situation how is the interest from these borrowings treated from a tax perspective in the future? Does the interest remain tax deductible each year until the loan is ultimately repaid?
Appreciate your thoughts on this.
I am looking at upgrading my PPOR and am considering selling an investment property to increase my borrowing capacity. I have an investment loan secured against the property (funds used to purchase the property) which i will repay with the sale proceeds.
When I purchased the property I also borrowed some funds under an investment line of credit loan to fund purchase costs.
The sale proceeds might just fall short of being sufficient to repay all of the line of credit borrowings. In this situation how is the interest from these borrowings treated from a tax perspective in the future? Does the interest remain tax deductible each year until the loan is ultimately repaid?
Appreciate your thoughts on this.