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rezjack(I'm new)I'm new
27 May 2026

This is what happened

I bought an investment home for $350000 in 2021 and I paid $89000 from my own money and I borrowed $280000 from bank of Queensland . So now in 2026, I just have equity of $181000 from this house and I want to withdraw exactly of $89000 equity so I can put my own money to my self and be able to tax deductible the whole cost of the house because at that time the bank of Queensland didn’t give me the full cost of the house as a loan so I needed to contribute my own money to the investment home so now in 2026, I want to withdraw what I have contributed

Is that possible so the whole cost of the house now be a tax deductible 


plz help me as I am genuinely want to deduct

64 views
3 replies
64 views
3 replies

All replies

YellowPotato(Taxicorn)Taxicorn
27 May 2026

No, generally the interest charged from the amounts relevant to the purchase of the home would be what is deductible


Generally, purpose of the loan determines the deductibility of the interest. Redraw is considered a new loan, so purpose of the redraw determines the deductibility of the interest from the redraw amount


May help to read ATO's ruling TR 2000/2 - https://www.ato.gov.au/law/view/document?docid=TXR/TR20002/NAT/ATO/00001

Liked by rezjack
rezjack(I'm new)I'm new
27 May 2026

Thank you so much for your answer Its not fair I guess if a bank lends it’s deductible if a person lends not deductible


Another person had borrowed 100% of the investment home and its tax deductible so I am doing the same thing it’s just borrowed differently but the purpose is the same.

YellowPotato(Taxicorn)Taxicorn
27 May 2026

Another person had borrowed 100% of the investment home and its tax deductible so I am doing the same thing it’s just borrowed differently but the purpose is the same.

  • The total interest charged would be the 'same' but deductible interest wouldn't be

Its not fair I guess if a bank lends it’s deductible if a person lends not deductible

  • No, the issue isn't about lending
  • It is the purpose of the loan that determines the deductibility, not what is used as security
  • Redraw is considered a new loan

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Can I deduct interest expenses on my investment loan? | ATO Community