The situation
Renovating IP. Took out equity loan / LOC against that same IP to fund the reno. LOC came with a cheque book. Tradies we hired were paid by cheque or direct deposit from the LOC account. But the DIY stuff was purchased on our credit card becasue didn't have an access card for the LOC. Keeping a record of these expenses, I reimbursed myself the money from the LOC. But that money was put into home offset and then home offset paid the CC on due date.
I now understand that the LOC is contaminated - accountant says he can sort out - but how this would be done he didn't specifically go into. - I am using a new accountant so early days.
I was advised to get an access card asap to avoid further contamination. In the meantime I have been thinking more about this and
If I keep using the LOC, even with a direct access card, won't the LOC still be contaminated? (I have used/spent 40% of the budget / LOC to date).
Is it possible to see bank manager and reduce the existing LOC to the amout owed, or slightly higher to account for capitalising interest. Then get another separate LOC to cover expenditure from this point on?
In the meantime - how do I purchase the stuff I need?
John
Renovating IP. Took out equity loan / LOC against that same IP to fund the reno. LOC came with a cheque book. Tradies we hired were paid by cheque or direct deposit from the LOC account. But the DIY stuff was purchased on our credit card becasue didn't have an access card for the LOC. Keeping a record of these expenses, I reimbursed myself the money from the LOC. But that money was put into home offset and then home offset paid the CC on due date.
I now understand that the LOC is contaminated - accountant says he can sort out - but how this would be done he didn't specifically go into. - I am using a new accountant so early days.
I was advised to get an access card asap to avoid further contamination. In the meantime I have been thinking more about this and
If I keep using the LOC, even with a direct access card, won't the LOC still be contaminated? (I have used/spent 40% of the budget / LOC to date).
Is it possible to see bank manager and reduce the existing LOC to the amout owed, or slightly higher to account for capitalising interest. Then get another separate LOC to cover expenditure from this point on?
In the meantime - how do I purchase the stuff I need?
John