I've recently taken full ownership of my rental property that I was previously a joint owner along with my ex-partner. The new mortgage is now a revolving one solely in my name, replacing the previous floating mortgage that was in joint name.
I did some research on revolving mortgages and understand that you shouldn't mix personal spending with it because it muddies the 'purpose of the loan' and therefore you can no longer claim the full interest back as tax deductible.
But what about using the mortgage for rental property-specific expenses? Can I pay my house/contents insurance, rates, R&M directly from the revolving mortgage and still claim 100% of all interest that accrues on the mortgage? What about if I made an improvement to the house, such as installing new carpet, which in itself wouldn't be tax deductible?
I did some research on revolving mortgages and understand that you shouldn't mix personal spending with it because it muddies the 'purpose of the loan' and therefore you can no longer claim the full interest back as tax deductible.
But what about using the mortgage for rental property-specific expenses? Can I pay my house/contents insurance, rates, R&M directly from the revolving mortgage and still claim 100% of all interest that accrues on the mortgage? What about if I made an improvement to the house, such as installing new carpet, which in itself wouldn't be tax deductible?
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