2 second tax question

[menty]

Wait a sec. What if you used your personal credit card to pay for say the water bill for your IP. I always thought this amount was deductible.

 

[Tyla]

This could be done with a credit card and then that loan later refinanced.

Would paying back CC (exclusively used for IP) from LOC or redraw be alright?

 

[Terry_w]

Would paying back CC (exclusively used for IP) from LOC or redraw be alright?

A credit card is a loan facility so a payment of an expense is a loan. If this loan is refinanced with another loan, such as a LOC, then the deductibility of interest won't be affected.

 

[Terry_w]

Wait a sec. What if you used your personal credit card to pay for say the water bill for your IP. I always thought this amount was deductible.

The expense is still deductible.
if interest is incurred on the card then this may also be deductible but if there are personal expenses on the card the interest would need to be apportioned.

 

[Tyla]

A credit card is a loan facility so a payment of an expense is a loan. If this loan is refinanced with another loan, such as a LOC, then the deductibility of interest won't be affected.

Thanks, Terry