I have an investment loan (margin loan) that was used to buy shares. I am currently able to claim and deduct the interest payments against these income producing shares.
I am wanting to refinance or rather close down the loan. I intending to redraw from my home loan to do so. And wonder if I can then claim the tax deduction on the interest of the home loan as it’s used for income producing investment (debt recycling)
There seems to be two very opposing thoughts even from 4 different accountants I have approached.
In both instances I am keeping the shares.
Opinion One; I am paying out an investment debt not purchasing an income producing Product
Opinion Two; it’s simply a refinance of where the debt is held. As you can debt recycle out of mortgage to buy income producing assets as long as you can seperate personal and investment portions. So essentially it’s just transferring the margin loan debt to another debt.
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