Hi,
I understand that we cannot use interest portion used for owner occupied property through refinancing the investment property.
However, if we refinance the investment property to the market value at the time it was declared as investment property, then are we able to claim interest on that value against rental income?
For example, if someone rented our property for the first time on 01/01/2023 and outstanding loan amount is $300,000. The value of the property on 01/01/2023 is say $500,000. So, may be 6 months or a year later, if you refinance the property to its market value on 01/01/2023 i.e. $500,000. So, the question here is, are you able to claim total interest on this value against the rental income as this was the property value at the time of renting out first time and use the funds to pay off owner occupied property?
Thanks.
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