Hi everyone,
I have a line of credit that i use only for investment purposes, so all the interest i pay should be tax deductable….however I just looked into my transaction history and it isnt very meaningful….so my question is: when i go to my tax agent at the end of the year, do i need to provide details of every individual transaction i made with the LOC? or is it ok to just say that its all for investment purposes and thats it….and only needing to prove if audited?
Thanks
PropertySeekerIt depends on your accountant. He / she may want to see a sample of cheques or invoices that you have paid through the LOC. We have one client in your situation, and he has told us that everything that goes through his LOC relates to his IP's, and we trust him, so we have done hardly any checking. But we have made him fully aware of the rules relating to deductibility of interest.
We have also advised him that the ATO will not be as trusting!
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