Hi Tax Gurus,
My first post here.
I am looking to buy a house and land for rental investment.
Bank has advsied me that I need to borrow extra 150k on my existing home loan (one we are living in) to cover the shortfall when the investment land settles and house is contructed.
Apprently this 150k will be set up as a top and will have a seperate loan no and ac for tracking and maintenance.
I will not be using funds for any personal expense and will only be used to acquire the land and construction.
These funds and a new investment loan @ 80% value of the land and house cost will be used to complete the land acqusition and construction.
Question: can I claim tax deduction on the interest of $150k when the property goes to market for rental. Bank is saying I cant given it is sitting under my owner occupied home loan. Does ATO look at the purpose and usage of the loan for tax deduction or the type of the loan?
Thank you.
1,443 views
2 replies