Hi,
Any guidance as to whether one can claim, as an expense, the interest costs for a loan for the purpose of paying for all the expenses associated with one's IPs for that year?
This loan would be part of a loan for a new IP. For example, for a new IP costing $200K plus $15K stamp duty, etc plus $30K to pay for all the interest payments and other IP expenses for the remainder of the financial year. Total loan would be $245K and 100% of interest payments would be claimed.
To re-phrase, does the tax office expect that rent be used for expenses or can it be siphoned off for private purposes?
In my situation, this excess cash would sit in my PPOR offset account, saving me interest and would serve as a source of emergency funds.
DaveC
Any guidance as to whether one can claim, as an expense, the interest costs for a loan for the purpose of paying for all the expenses associated with one's IPs for that year?
This loan would be part of a loan for a new IP. For example, for a new IP costing $200K plus $15K stamp duty, etc plus $30K to pay for all the interest payments and other IP expenses for the remainder of the financial year. Total loan would be $245K and 100% of interest payments would be claimed.
To re-phrase, does the tax office expect that rent be used for expenses or can it be siphoned off for private purposes?
In my situation, this excess cash would sit in my PPOR offset account, saving me interest and would serve as a source of emergency funds.
DaveC