Hello everyone,
I have a query about setting up 2 LOC accounts. My concern is that because the borrowing costs are deductible over a number of years this may need to be separated from the purchasing costs when using a LOC to fund it all.
I'd use one purely for borrowing costs and the second one for purchasing and running costs on investment properties. Is this possible, will it save a headache for the accountant at tax time? Or does it not matter in the scheme of things and using 1 LOC is sufficient.?
1 should be sufficient.
You can actually claim expenses out right even if you borrow to pay them. You are looking at interest on borrowings which would be treated differently.
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
I'm with Terry – I can't see why you'd need to complicate it. The one LOC should do the trick.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Yeah that's what my wife thought as well. Thanks for that.
Fox House
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