You friend can still claim the 1st property if he wishes as PPOR (6 year rule) even if he rents out and negative gears whilst living in the 2nd one. As long as the rent is market rate,all expenses in holding that property are allowable. if loan redrawn or increased for for  2nd property then it needs to be apportioned appropriately . When he d…[Read more]

"He kept his first home and rented it out when he moved into his new home. He has been negative gearing the first property since moving out" yes he can negative gear this property , the loan does not have to be "for investment at the outset" Peoples circumsances change as well as their asset position. Assuming that your friend has not increased t…[Read more]

Mattformmalvern pm or email me me I am in public practice I may be able to point you on correct path, however 1st i will need to know more detai in regards to the structure that you have for the ownership of business etc…cheers.