Car financing question

[alpina]

hi all,

rather than do a CHP with a provider, is it possible to pull equity from your home to purchase a car and then claim the interest component (specific to the car) for tax purposes?

if so, what would be the cleanest way of doing this?

hope this question makes sense.

regards,

julie

 

[alexlee]

rather than do a CHP with a provider, is it possible to pull equity from your home to purchase a car and then claim the interest component (specific to the car) for tax purposes?

Doubt it, since the car doesn't make you any income. Theoretically you can use equity from your home, lend it to your business and the business buys the car, but there might be FBT issues.
Alex

 

[alpina]

Doubt it, since the car doesn't make you any income.

Sorry, should have clarified. Car will earn me income in the sense that it will be used for business purposes.

Guess what im really asking is rather than financing the car from a financial institution, can i finance it from my own equity and get the benefit of the lower interest rate?

Julie