Can I transfer a portion of my home debt to an investment property and claim a deduction?

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(Newbie)Newbie

22 July 2022

Hi ATO Community!

I have an unencumbered Investment Property which is rented out and is solely in my name.

I also have another property with my partner. This property is our primary place of residence and has debt owing.

I'm wondering if there is any scope to move a portion of the home loan debt to the investment property?

If possible, would the interest payments under the investment property be tax deductible?

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ATO Certified Response

(Taxicorn)Taxicorn

ATO Certified Response

22 July 2022

No - purpose of loan was to buy main residence, not for investment.

Purpose is determined by tracing the loan funds from the lender to the asset acquired.

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ATO Certified Response

(Taxicorn)Taxicorn

ATO Certified Response

22 July 2022

No - purpose of loan was to buy main residence, not for investment.

Purpose is determined by tracing the loan funds from the lender to the asset acquired.

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