Hi ATO community,
I recently bought a house for 1.7 mil (property A) and plan on moving into it from my current PPOR (property B), which I’ve mostly paid off (purchased at 1 mil and market value ~1.6 mil). I managed to get a single investment loan of 1.8 million with both houses as securities. I was wondering if I can report the interest paid on 1.6 mil of the loan as investment expenses for property B now that it’s my investment rather than PPOR?
Thanks
I was wondering if I can report the interest paid on 1.6 mil of the loan as investment expenses for property B now that it’s my investment rather than PPOR?
When B is rented, then interest can be claimed - but only for the loan originally used to purchase it.
I was wondering if I can report the interest paid on 1.6 mil of the loan as investment expenses for property B now that it’s my investment rather than PPOR?
When B is rented, then interest can be claimed - but only for the loan originally used to purchase it.
You borrowed money to buy another property (A). This will now be your main residence (PPOR). The interest on this extra amount borrowed can't be claimed as a deduction as it was used to purchase a property that will not be rented. You can only claim the interest on the money borrowed that was used to purchase property B. Refinancing a loan doesn't change the intent of what the original borrowed funds were used for.
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