hi
i have bought the investment property (land and home package) worth $376000 in QLD fabruary 2009 and the bank had offered me only $319500 at that time so i took almsot $74000 from my home equity for all the coast, first i bought the vacant land and then constructed the home, they handed me over the key end of july 2009 and the tenant moved in august 2009 so now question is can i claim intrest on this $74000 which i redraw from line of credit on my 2009 tax return because my tax agent not sure about that and it make me confused as well, so could you please help me out about that
pranay
This has been answered several times so check some of the previous posts but in a nutshell, if the primary purpose of the loan (assuming you have now got a separate line of credit or another mortgage on your PPOR) was for investment purposes (ie deposit & costs for an IP), then in all likelihood the interest is deductible. If on the otherhand you used this to finance your holiday to Barcelona then it wouldn't be deductible.
Is your tax agent confused because you did not get any income in year ending June 2009 from the property (tell him to look at Steele's case) or because you mixed the redraw with other funds
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