All Topics / Legal & Accounting / Subdivision with line of credit.

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  • Profile photo of BluegumBluegum
    Participant
    @bluegum
    Join Date: 2006
    Post Count: 14

    I am currently in the process of battleaxing my 1 acre home block and plan to put an investment 4×2 house at the rear. If i use a line of credit to finance the complete project will the subdivision costs be tax deductable?. to date i have paid cash to the surveyor and project managers

    Profile photo of Stuart MilneStuart Milne
    Member
    @stuart-milne
    Join Date: 2006
    Post Count: 196

    The costs are all tax deductible, the difference with using a line of credit is your minimum payments are all interest only and once you have paid it out you can redraw on it as in most cases they leave the account open for you. It will give you an extra deduction i.e; interest to claim.

    This is only my understanding and is not intended to be financial advice it is of a general nature only please make your own investigations into thsi using a licenced taxation adviser.

    Stuart Milne
    Non-Conforming Specialist
    READY Mortgages
    http://www.readymortgages.com.au
    [email protected]
    Mob: 0404 056 055

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