I am trying to buy an investment property, and I am organising the loan for it. My PPOR is already fully paid off. I am trying to get an equity loan from my PPOR to finance my IP. If this is the case, would all the expenses with the IP and the loan from the PPOR still be tax deductible?
yes
It's not what the loan is secured by which determines it's deductibility….it's the purpose of the loan funds that determines whether or not the ATO will allow deductibility. So if you use all of the home equity loan to fund a deposit for an investment property then you should be okay. Just be mindful no personal income or expenses go through the equity loan.
As i mentioned in the reply to the same post in another section of the forum you would not use your PPOR to solely secure the loan.
Carefully structuring is required to avoid contaminating the interest and in my opinion the investment sub loan secured against your PPOR would have a 100% offset account attached to it to save you even more.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
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