Hi Terry,

In 12 months when we are living in our current investment property we would like to be able to claim as much of the interest as possible as a tax deduction. Unfortunately we have a large loan against this property and much smaller loan against our other property (currently our PPOR).

Can we change the value of the loans to achieve this? i.e. reduce the large one and increase the small one? Soon we will be living in the UK and both will be IP until next year when we return.

I know the bank will do this. I’m just wondering about the ATO rules.