An analogy maybe something like urinating in a bucket of water and then saying you will only drink the water portion.
Brilliant analogy for co-mingling of funds.
Why didn't the ATO use this example in TR2000/2 ???
Cheers,
Rob
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An analogy maybe something like urinating in a bucket of water and then saying you will only drink the water portion.
Ummm .... I suspect not.
paul, what does your accountant say to that one?
eg You have a $300,000 loan, and pay it down to $200,000. It is an investment property. $100,000 is available in redraw so you withdraw this to pay for teh deposit on your new PPOR. Your total loan is $300,000, but you will only be able to claim the interest on $200,000 as $100,000 was borrowed for private use.
A slower way around this is to stop paying interest on the loan and let it capitalise.