I know on loan applications for Equity/LOC for the particular bank I use to pull some more for property deposits etc has a "declaration of purpose" and a warning that I should not sign unless the loan is used predominantly for business or investment purposes. Now, let's say, I want to use one of these loans for "private" purposes ie, the purchase of a motor vehicle for example. Now I know the interest on this loan in this instance cannot be tax deductible, and I don't expect it to be! But what is the ramifications if it is used for private and not investment?
Equity/LOC and its use
- Thread starter Fester
- Start date
G'day Fester,
The way I read this is that the "predominant amount" is to be for investment purposes. i.e. if some amount (49% of it, or less) buys you a new car, then it shouldn't be a problem. Of course, as you stated, any interest paid on the car loan would not be a Tax deduction.
So, as long as the PREDOMINANT part (i.e. greater than 50%) is used for Investments, I don't see a problem.
But then, as most know by now, I'm NOT an accredited adviser, just a bloke with an opinion
If Dale weighs into this, you can take what he says to the bank !!!
Regards,
The way I read this is that the "predominant amount" is to be for investment purposes. i.e. if some amount (49% of it, or less) buys you a new car, then it shouldn't be a problem. Of course, as you stated, any interest paid on the car loan would not be a Tax deduction.
So, as long as the PREDOMINANT part (i.e. greater than 50%) is used for Investments, I don't see a problem.
But then, as most know by now, I'm NOT an accredited adviser, just a bloke with an opinion
If Dale weighs into this, you can take what he says to the bank !!!
Regards,
Hiya
The dec signed for the bank is mainly for the purposes of the loan NOT to be covered by the Consumer Credit Code.
As to what you use the funds for after you sign the form is your business.
The UCCC states INTENT on the day is what matters
tA
Rolf L
The dec signed for the bank is mainly for the purposes of the loan NOT to be covered by the Consumer Credit Code.
As to what you use the funds for after you sign the form is your business.
The UCCC states INTENT on the day is what matters
tA
Rolf L
