Tax implications of using IP equity to fund PPOR

Hopefully a simple question...
I have an IP with an IO loan. If I get another separate loan to access the equity from my IP and use that equity to buy my PPOR, is it just the separate equity loan interest that is not tax deductible or does the original IP loan also get 'polluted'?

Thanks
Jeff
 
Do a new split on the IP loan, put equity release funds into that, then draw the funds down for your PPOR. Keeps deductibility for the original IP loan seperate and you can then accurately apportion deductible vs non deductible debt.
 
Thanks Terry.
I'm having real trouble getting advice from my broker. Not too happy


People must have specific qualifications to give financial advice. If they don't have the correct certificates then they legally cannot advise (and face penalities if they do). You may have to consult an accountant.
Marg
 
People must have specific qualifications to give financial advice. If they don't have the correct certificates then they legally cannot advise (and face penalities if they do). You may have to consult an accountant.
Marg

This isn't financial advice but tax advice. Only people registered as tax agents and lawyers can give tax advice. I think financial planners - or Australian Financial Services Licence holders or reps - may be able to give tax advice until next June.
 
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