I need some help from the experts here please! At the moment I have 3 investment properties and a property that is my home. Each of these has some degree of lending associated with it. All are just owned in my name (no company/trust structures). Here is a rough summary of my position:
IPs are interest only, home is I+P. At the moment I claim a tax deduction on the interest associated with the IPs. My lending is all coming off fixed term soon, and what I want to know is if I can re-structure my lending so that all of the lending is attributed to the IPs, so that it all becomes tax deductible. For example, keeping my total lending the same, could I say that my portfolio was actually like this for a tax perspective?
What would the IRD think of this?
Value | Lending | ||
Investment Property 1 | $400,000 | $100,000 | |
Investment Property 2 | $400,000 | $310,000 | |
Investment Property 3 | $400,000 | $268,000 | |
Home | $500,000 | $250,000 | |
$1,700,000 | $928,000 |
IPs are interest only, home is I+P. At the moment I claim a tax deduction on the interest associated with the IPs. My lending is all coming off fixed term soon, and what I want to know is if I can re-structure my lending so that all of the lending is attributed to the IPs, so that it all becomes tax deductible. For example, keeping my total lending the same, could I say that my portfolio was actually like this for a tax perspective?
What would the IRD think of this?
Value | Lending | ||
Investment Property 1 | $400,000 | $309,333 | |
Investment Property 2 | $400,000 | $309,333 | |
Investment Property 3 | $400,000 | $309,333 | |
Home | $500,000 | $0 | |
$1,700,000 | $928,000 |
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