Jeff, thanks.

A few comments.

Capitalising the interest doesn’t matter to us now as we paid out the non-deductible part of the loan.

We do have a formal partnership from the mid 80’s for other business, ie not related to IPs (not sure if that is relevant or useful to know).

Our problem has come to the fore as we were looking to refinance (having built reasonable equity) but still offset costs against my income only. Of course, we will be forced to refinance if the titles change, and pay SD and CGT costs.

I have been told that there are about a dozen legal ways to accomplish what we are attempting to do, the last of which is to pay SD, etc. I just don’t have the knowledge of these, although I believe they may be related to structuring.

Steve