Releasing Investment Equity into PPR

Kosta#1 Posted : Monday, 17 December 2012 1:21:50 AM

Need some Tax implication advise here please.

We currently have an Investment Property that we plan to move into shortly. We also have another that has a bit of equity in it at that should allow us to increase our Loan. I have been told that we can move equity around from one investment loan to another and still continue to claim the same amount, can we do this to our future PPR (transfer will happen whilst still an investment property) and still claim that increased loan on the Investment Property, further increasing the negative gearing whilst reducing the loan on the future PPR..?

  • Eos Property#2 Posted : Monday, 17 December 2012 8:32:22 PM

    I am not an accountant and this is one question you will need to run past him/her before you make any moves.

    Ultimately the ATO will determine deductibility based on what purpose the additional borrowings were for. In the example you have provided the ATO could justifiably say the purpose of the additional borrowings was for your home.

    Definitely consult your accountant.

Post a reply