Hi everyone,
I need some advice please. My current situation is as follows:
PPOR value $600k , mortgage $275k . I plan to change this mortgage to IO with offset acc and get
a LOC for the deposit on a IP. Now if i keep the investment property for 12 months to claim stamp duty etc
can i then change it to my PPOR and turn my old PPOR into a IP and claim the interest from the deposit plus
the interest on the $275k as tax deductions since it was originaly borrowed for investment purposes?
Or am i totally wrong and have to come up with a new plan?
Any advice greatly appreciated.mpjt
mpjt
In the words of Laurel & Hardy "seems like a good old mess you got yourself into".
No regretfully not you cannot claim the interest on a LOC as the "purpose" is what defines the deductability and not the security.
The way you should have done it from day 1 was to have taken out a interest only loan with 100% offset account and then of course you could have claimed the interest on the original loan balance when the property becomes an IP.
Richard Taylor | Australia's leading private lender
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