From: Stirling Reid
The last IP I purchased I paid 10% deposit to the broker in cash then later sent the broker 20% in borrowed funds. The broker then sent back the original 10% and gave me some strange looks.
However to keep the the friendly tax man happy, I understand that this is the way it has to be done.
The alternate way of using the 10% from my holiday fund and then replace the holiday fund with borrowed funds may cause some questions from the tax man about the validity of claiming the tax deduction.
Or can I call my holiday fund "working capital"
Can anyone comment?
The last IP I purchased I paid 10% deposit to the broker in cash then later sent the broker 20% in borrowed funds. The broker then sent back the original 10% and gave me some strange looks.
However to keep the the friendly tax man happy, I understand that this is the way it has to be done.
The alternate way of using the 10% from my holiday fund and then replace the holiday fund with borrowed funds may cause some questions from the tax man about the validity of claiming the tax deduction.
Or can I call my holiday fund "working capital"
Can anyone comment?
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