All Topics / Legal & Accounting / Interest deductions with mixed use line of credit

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  • Profile photo of davidthompsondavidthompson
    Member
    @davidthompson
    Join Date: 2008
    Post Count: 1
    April 1, 2008 - 7:55 am

    I have a line of credit that I use for every day personal banking & investment purposes. Is it acceptable by the ATO that the account is split using a spreadsheet to allocate cash movement & interest between investment & non business without getting on the wrong side of TR2000/2

    Profile photo of Scott No MatesScott No Mates
    Participant
    @scott-no-mates
    Join Date: 2005
    Post Count: 3,856
    April 1, 2008 - 8:50 am

    Split your LOC, at least you can easily track your investments and you do not need to worry about apportioning any interest/repayments

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213
    April 1, 2008 - 12:05 pm

    It should be acceptable, but it is still not ideal as any repayments to the account over and above the interest will need to be apportioned between the private and business portions in the same percentages as their balances. ie you cannot just pay into the private portion first = which is not ideal for saving tax.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

Viewing 3 posts - 1 through 3 (of 3 total)

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