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Loan restructure on PPOR

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

  1. paulc

    paulc New Member

    Joined:
    11th May, 2012
    Posts:
    1
    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. Terryw

    Terryw Well-Known Member

    Joined:
    9th Jun, 2006
    Posts:
    653
    Location:
    Sydney
    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.