I Move into an Investment Property & Lease Primary Residence. Can I Negatively Gear My High Investment Loan?

I purchase an investment property and move in there after leasing my primary residence. Can I claim tax exemption for my high investment loan (negative gearing) based on low rental income that I get from my primary residence.

Suggestion:

In Australia the ATO would view your situation as follows: Your previous primary residence's loan would now be tax deductible and the rent received would be taxed. Your previous investment loan would no longer be tax deductible. So if your home has a large debt on it then this could work well for you. Speak to your accountant to be sure you are doing the right thing.

Tagged as: move into investment property and foreclosure on primary home