Hi PI Team! Hope you all are well.
Question, can an investor (me) use his line of credit on from his first investment property to finance his holiday in december? Or will this affect the investors tax? Or should the investor simply go for a personal loan for the holiday?
Thank you in advance for your comments.
zen :)
Or save up and pay cash for the holiday!
If you draw from a line of credit which is also used for investment uses – the purpose of funds will be polluted and cause a nightmare for your accountant to work out from a tax perspective.
If you have to borrow for the holiday – it’s best this is from a separate line of credit/loan account used solely for this purpose.
Corey Batt | Precision Funding
http://www.precisionfunding.com.au
Email Me | Phone MeInvestment Focused Finance Strategist - servicing Australia-wide
Interest won’t be deductible if you are borrowing for a holiday.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Thanks heaps Corey and Terry, appreciated.
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