All Topics / Legal & Accounting / Tax Deductions for Interest on Capital Costs and Borrowing Expenses
I think Terry is right. You can take the IP IO from your offset account and not from your LOC. I agree there is cashflow benedits but this is also tax avoidance.
Another question on the same topic.
If I pay my council rates with my credit card e.g. $400 per quarter. Can I pay $400 from my LOC account or not. By doing this I can get interest free period of my credit card.
Rgds
Steve
Steve,
possibly as you are only refinancing the cc loan with the LOC loan. But to be effective you would have to have only properties expenses on the cc otherwise your payment to the cc would need to be apportioned between the private and investment expenses.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
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Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
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