I currently have an investment property with a loan of $300,000, and $500,000 in redraw for my PPOR. If I was to pay off some, or all, of the investment loan with the redraw is the amount I redraw still a tax deduction?
On top of that, when I paid the deposit for the investment property I used redraw of $100,000 so I can also claim the interest on that part of the redraw as well can't I?
I can't split my home loan, but if I keep track of the % used for the investments am I correct in that I am able to claim that % of the interest? For example if my homeloan is $600,000, and $100,000 of that was from the initial investment property deposit I can claim the deduction of 1/6 of the interest on the loan from when I paid the deposit?
I understand it gets more complicated if I then put more into redraw as that then pays down both the investment part and the non-investment part so being unable to split isn't ideal, but all I have to work with.
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