Loan restructure on PPOR

Discussion in 'Accounting & Tax' started by paulc, 11th May, 2012.

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  1. paulc

    paulc New Member

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    1st Jul, 2015
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    Location:
    Melbourne, VIC
    Hi All.

    My situation is I have my PPOR that I have lived in for >10yrs. Over that time I have restructured the loan a few times for personal purchases. I am contemplating turning my PPOR into an IP, and purchasing a new PPOR.

    My question is at what point does the ATO look at the purpose of the loan in terms of the ability to claim interest?

    Is it the original loan amount when I purchased the home, or the loan amount at the point at which it becomes an IP?

    Thanks, Paul.
     
  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

    Joined:
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    Australia wide
    NEITHER.

    it is the loan amount that can be attributed to the purchase of the house. this will be the paid down loan amount before any withdrawals.
     

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