What would the situation be if one only owns an investment property and one elects to let the interest accrue and be added to the loan ?

One collects rent from the investment property which is of course txable income.

The interest on the original loan amount is of course tax deductable and can be offset against one’s income.

The interest incurred on the unpaid monthly interest itself wouldn’t be a tax deduction because it isn’t used to generate income.

Do I at least understand that aspect correctly ?

If that is correct then, bringing one’s owner occupied home into the equation, wouldn’t the same rules apply there i.e. the interest on the original investment loan is tax deductable to interest incurred on the unpaid monthly interest would not be ?

There appear to be two issues in the court case i.e. firstly, interest on the unpaid monthly interest payment isn’t acceptable (which I concede) and, secondly, whether directing one’s money (derived from one’s after tax income) towards one’s home loan rather than towards one’s investment loan.

Is my understanding there correct ?

Peter

Hi WallFlower,

I am really starting to feel something stirring in me for you WallFlower. The fact that you may be married or, for that matter, have some children, all of these things wouldn’t really stand in my way if I felt a strong attraction to someone.

Whilst I am a romantic person I do not quite have a way with words like some people do.

I therefore would like to use part of a song titled ‘Fascinations’ to express my thoughts and feelings.

Fascinations

If it seems a little time is needed
Decisions to be made
The good advice of friends unheeded
The best of plans mislaid
Just looking for a new direction
In an old familiar way
The forming of a new connection
To study or to play

And so the conversation turned
Until the sun went down
And many fantasies were learned
On that day

Keep feeling fascination
Passion burning
Love so strong
Keep feeling fascination
Looking learning
Moving on

Love [inlove] (or fascination ?) for you,

Peter

BTW, whilst I fully understand Mary’s attraction to dark eyes I doubt that anything will come from I meeting her. Firstly, I have blue eyes, not dark brown or black. Secondly she, as she herself acknowledges, is on the rather shy side. I am much more attracted to a woman like you, a girl who isn’t afraight to stand out in a crowd.
Someone who would be the life of a party.

Couldn’t we meet for a coffee sometime WallFlower ? Just to get acquainted, just to relax and sip a cup of coffee sitting outside a sidewalk café. No need to feel threatened, I promise, the most I may try to do is hold your hand.

Eyes do however matter to me, Wallflower.

Looking at your picture I have been dreaming about you for the last five days and just cannot get you out of my mind.

I am a rather romantic type of person (as you will see in my profile) and when I woke up this morning after again having been dreaming about you the following song came into my mind. I hope you will like it and feel flattered. We MUST get together soon (if you are free and unencumbered and interested in a person with my profile that is).

I look at you in your sad dark eyes
And your gypsy face with your spanish grace
With your words like rhymes and your voice like chimes

Darling, I want to kiss your burning mouth
Your sad dark eys and your ghostlike soul
Darling baby say that you’ll be mine

Put your ring on my finger
And comb your long red hair
Put on your sad eyes
And tell me that you care
That you’ll be mine, you’ll be mine
Until the end of time

Lonely Single Man
A.K.A. Peter