From: Ian Findlay
Hi all,
My understanding is that capitalising interest on interest on loans and then
claiming capitalised interest (interest on interest) as a tax deduction the
is a big no no according to the ATO.
However don't we do this all the time? Banks calculate interest daily on
balance but charge monthly in arrears, isn't this capitalising on interest?
Why can't we pay all interest at the end of the financial year rather than
monthly thus maximising deductibility and keeping monthly cashflow high?
Ian
Hi all,
My understanding is that capitalising interest on interest on loans and then
claiming capitalised interest (interest on interest) as a tax deduction the
is a big no no according to the ATO.
However don't we do this all the time? Banks calculate interest daily on
balance but charge monthly in arrears, isn't this capitalising on interest?
Why can't we pay all interest at the end of the financial year rather than
monthly thus maximising deductibility and keeping monthly cashflow high?
Ian
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