Hi,
Consider this scenario.
A house bought for 500k.
Subdivide and build on rear block and retain.
So the value of the original house has reduced, by say 15%. This house is rented and negatively geared.
After the subdivision, I assume the bank would secure the original loan (lets say it was 100% so 500k) against both front and rear houses.
Come tax time, can I still claim interest expenses for the entire loan against both properties, I'm guessing not, but if not, how should it be calculated?
Thanks,
Gooram
Consider this scenario.
A house bought for 500k.
Subdivide and build on rear block and retain.
So the value of the original house has reduced, by say 15%. This house is rented and negatively geared.
After the subdivision, I assume the bank would secure the original loan (lets say it was 100% so 500k) against both front and rear houses.
Come tax time, can I still claim interest expenses for the entire loan against both properties, I'm guessing not, but if not, how should it be calculated?
Thanks,
Gooram