This has probably been asked before but I can't find the answer. Can you claim interest on mortgage for money borrowed to buy shares?
We have 2 rental properties, no other income except interest and capital from fixed deposits and dividends from shares. Now interest rates are lower we are moving more cash to shares. We want to keep the properties in the near future but also want to diversify a bit more into shares so are drip feeding money into smartshares. We will need to sell a property eventually to spend the money to live on but as our properties are in two large chunks of capital we don't want to sell and have $500k cash at once, so wondered about loaning against it to buy shares gradually, dollar cost averaging, so when we sell the property at least half of the capital will have been drip fed into shares already.
I imagine as smartshares dividends are tax paid you couldn't claim the interest on money borrowed to buy them, but if you buy regular shares which you pay tax on the dividends can you borrow against a rental or your own home and claim the interest as an expense? And how does ring fencing affect that?
LAJ
We have 2 rental properties, no other income except interest and capital from fixed deposits and dividends from shares. Now interest rates are lower we are moving more cash to shares. We want to keep the properties in the near future but also want to diversify a bit more into shares so are drip feeding money into smartshares. We will need to sell a property eventually to spend the money to live on but as our properties are in two large chunks of capital we don't want to sell and have $500k cash at once, so wondered about loaning against it to buy shares gradually, dollar cost averaging, so when we sell the property at least half of the capital will have been drip fed into shares already.
I imagine as smartshares dividends are tax paid you couldn't claim the interest on money borrowed to buy them, but if you buy regular shares which you pay tax on the dividends can you borrow against a rental or your own home and claim the interest as an expense? And how does ring fencing affect that?
LAJ
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