Hi Folks,
I am just wondering if a LOC that is set up for investment purposes can be used to pay an expense such as a building and pest inspection?
I understand that the inspection itself is a capital cost (added to the cost base of the property) but would like to know this: If a LOC is used to make the payment, does that mean that it becomes "tainted" for future interest deductibility or is this type of expense OK?
To put it another way, I believe you can borrow for a capital improvement and still claim the interest as a tax deduction but can you "borrow" for a building and pest inspection?
Cheers
I am just wondering if a LOC that is set up for investment purposes can be used to pay an expense such as a building and pest inspection?
I understand that the inspection itself is a capital cost (added to the cost base of the property) but would like to know this: If a LOC is used to make the payment, does that mean that it becomes "tainted" for future interest deductibility or is this type of expense OK?
To put it another way, I believe you can borrow for a capital improvement and still claim the interest as a tax deduction but can you "borrow" for a building and pest inspection?
Cheers
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