Can someone from the ATO please clarify the following.
Debt recycling Example as follows
Assume $2M Principle place of residence loan P and I in my name and house is in my name as well.
Assume I pay down loan by $1M then redraw Straight away but transfer funds to my wife’s stock account and buy shares.
I assume I can claim the interest cost on the $1M now that’s it producing income, however, is it an issue as the funds are in my wife’s name and not mine, whilst the house loan is in my name?
Thus as I am the legal home owner and the loan is in my name, can I still claim 100% of the interest deduction for the $1M that I have transferred into my wife’s stock trading account for her to buy stocks and there by she pays tax on any gains or dividends on the stocks as it’s in her name?
Also do I need a seperate loan account when I pull out the $1M or can I just pull it out of the existing PPR loan and transfer straight to stock trading account?
Thank you.
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