If one borrows money (say,on a personal loan),& claims to borrow it,it is for a personal reason (say,a car),but once you get the money use it for investment purposes (say a deposit for an i.p.)- & it can be easily proven that’s where the money went-is the interest then deductable?
Same if u borrow on a “home loan”,but then use funds for an i.p,is interest,etc still deductable? (even tho the loan will state it’s for something else?)[confused2]Misty,
My understanding is that it’s what the money is borrowed for that’s important, not where it came from.
So as long as it’s used for income-producing purposes, then I believe it should be deductible.
But as always, check with a good accountant.
GP
I agree with GP on ths one.
It is the use of the money – not what you had on the application form. But as always read below my signaure.
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
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