Reduce tax on converting PPR to IP

Hi All- my first post
I am moving out of my PPR in 6 months, it is in my name, value is $800k and I have no loan on it. I could rent it out at $1000/week (less tax!) if I convert it to an IP. Is there any way I can take a loan on the ppr (extract the equity) so that I can reduce the tax on the rent I could receive?
The ultimate decision that I have to make is A1- convert ppr into IP and take a loan out for a new ppr, try and minimise tax on the rental income; or A2- sell the ppr (no CGT) and use the funds for my new ppr; or A3- sell ppr to my wife (to extract equity)
Any legal suggestions would be greatly appreciated.
Thanks
Paul

 

I had almost exactly the same query on a different forum and got a few answers. Here is the link, it sounds like you will be like me and stuck with all that equity tied up

Turning primary place of residence into an investment - Somersoft Property Investment Forums

 

Bladerunner2,
It is a relatively common situation people find themselves in.
If people had foresight, they would have simply used an offset and deposited their funds into that and left the original loan with its integrity. When they then move out to buy another PPOR, they simply take out the offset funds and the interest cost on the original loan is then deductible against the rental income.

As it did not happen, you have the three choices. Which makes most sense depends on whether you are planning to buy your next PPOR or consider renting for a period and the price. You can refinance your existing PPOR and set up a new loan that could be used to purchase another IP which may be negatively geared to help reduce the tax effect of renting out your 'old' PPOR. In Victoria, you could transfer the PPOR to your spouse (no stamp duty) and depending on her income position, benefits her with income at a lower marginal tax rate than you. I do not know WA transfer rules but it may be worth exploring. The third option is to sell.
Good luck