I have a general question around claiming interest on monies used to pay bills related to property investing.
If the cost is associated directly to the property i.e. council rates, water services, insurance etc etc and I was to pull money from the redraw attached to the investment property to pay such bills, does that interest still become tax deductible?
I am thinking if your investment loan has enough money in redraw to cover these costs and the interest is deductible would it make more sense to pay bills etc this way i.e. from redraw or pay out of your own personal money and just claim the bill expense with no interest costs?
I have researched a little bit about claiming interest and it all seems to talk about claiming interest to buy and for repairs, but not much about running costs.
Hope that makes sense.
If the cost is associated directly to the property i.e. council rates, water services, insurance etc etc and I was to pull money from the redraw attached to the investment property to pay such bills, does that interest still become tax deductible?
I am thinking if your investment loan has enough money in redraw to cover these costs and the interest is deductible would it make more sense to pay bills etc this way i.e. from redraw or pay out of your own personal money and just claim the bill expense with no interest costs?
I have researched a little bit about claiming interest and it all seems to talk about claiming interest to buy and for repairs, but not much about running costs.
Hope that makes sense.