turning PPOR into IP

[imonmyway]

I have a loan on my PPOR that i refinanced a few years ago and included a secondary mortgage into it which I had used for renovation purposes. The total value of the loan at present is less then the original purchase price.

If I now rent this house out can I claim the tax on the total loan or only the amount that was owing minus the extra for the renovation.

 

[Rolf Latham]

Hiya

If the reno money was used soley for the reno on the NOW IP

I reckon you can deduct the lot.

Im not tax guy, pls seek specific advice : )

ta
rolf

 

[Propertunity]

If the reno money was used soley for the reno on the NOW IP...I reckon you can deduct the lot.

^ ^ I reckon the same as what he said.

Also assuming that you have not contaminated the origianl loan or the reno loan with some private borrowings for other things un-related to the house.