Tax question

Hi all,



I've come across a scenario where I'm uncertain of the tax implications and hope you can shed some light for me?



Property 1 PPOR owned by Uncle and Niece.

Loan split 1 - original loan, both borrowers

loan split 2 - used for IP in niece's name only.



If loan 2 has both PPOR owners names on loan, but use is for IP in nieces name only, is interest claimable -



100% by niece?

50% by niece?



I've wrestled with it but conceeded defeat :)



Thank you!

Tax question