Hi Guys I am at present having my property portfolio revalued so I can purchase more Managed Fund units. I have recently been pretty high in the Margin call buffer zone & if I put these funds straight into my MF’s, the LVR should drop back down to app. 57% (at this time). I also feel it’s a good time to get those units at these prices. I have just been wondering that, if, instead of doing the above, I kept the funds in an untouched / empty Offset account & only bought funds when & if I receive a margin call, would that affect the tax deductibility of the interest? (I would not be claiming against the interest whilst it's in the offset account, as it would be reducing the interest elsewhere. Apportioning will be a little headache but do-able). The original purpose of the loan is to invest in MF's but would I be judged by the ATO to be doing something else? Any opinions? Thanks.