Investment Properties, Loan splitting, tax deduction, Taxation Ruling 98/22

[mtooler]

Hi all,

I have vague recollections reading some proverty investors or accountants discussing tax deductions for split loans between primary place of residence and an investment property on one of the swans boards threads. In a nutshell if a split loan between a primary place of residence and an investment property was $10 total, the primary place of residence loan was $4 with an interest rate of 1% lower than normal and the investment property loan was $6 with an interest rate of 1% higher than normal, is that doable?

Not sure who the people with decent knowledge on this are. Have read TR 98/22 and it appears there are multiple private rulings approving of this set up. I'm curious if this is the normal way of setting up loans for investment properties.

Cheers.

 

[Number37]

It is an old ruling. Try to find something a little more recent.
The ATO is not bound by private rulings other than to the entity to whom the private ruling was given.
The potential Labor govt has proposed numerous changes to the tax treatment of investment properties.

 

[sataris]

The ATO is not bound by private rulings other than to the entity to whom the private ruling was given.

This sounds like legalized cronyism.

 

[Number37]

This sounds like legalized cronyism.

Fun fact.
The current Commissioner of Taxation has seconded a lift in the building in which his office is situated for his exclusive use.
That's right, nobody is allowed to use the lift besides him.

 

[GotTheGoodes]

Fun fact.
The current Commissioner of Taxation has seconded a lift in the building in which his office is situated for his exclusive use.
That's right, nobody is allowed to use the lift besides him.

That's not fun at all 37....

 

[Number37]

That's not fun at all 37....

Chris Jordan is a w***er. What he is doing to the ATO will set it back 50 years.

As a Big4-ian you would be pleased with his work?

 

[GotTheGoodes]

Chris Jordan is a w***er. What he is doing to the ATO will set it back 50 years.

As a Big4-ian you would be pleased with his work?

I am the furthest thing from a big4-ian mate.

Agree with you though. Hasn't been a great decade IMO.

 

[Number37]

I am the furthest thing from a big4-ian mate.

Agree with you though. Hasn't been a great decade IMO.

Soz, my mistake I thought you were a big4-ian.

 

[GotTheGoodes]

Soz, my mistake I thought you were a big4-ian.

No need to be sorry mate. I'm very happily not.