help with loans please

[Sim]

Reply: 2.2.1.1.1.1.1.1.1.1.1
From: Sim' Hampel


On 4/20/02 7:14:00 AM, Geoff Whitfield wrote:
>
>My understanding is that there
>are a number of items which I
>can't claim on tax- but if I
>use my LOC to pay for them, I
>can.

Be careful with your phrasing here - just because you pay for something with a LOC does not necessarily make the COST of the item claimable, but if the item was for income producing purposes, then the INTEREST on the LOC is claimable. I think this is what you meant anyway, but your wording implied something else !

>So I can't claim for the
>cost of a house, but I can
>claim on the interest. A
>number of the fees associated
>with purchasing of a house are
>capital in nature, and are not
>claimable in tax, but they can
>be claimed when selling the
>house against capital gains. I
>claim the interest on these
>amounts when I borrow (using
>the LOC).

I knew you knew what you were talking about ;-)

 

[geoffw]

Reply: 2.2.1.1.1.1.1.1.1.1.1.1
From: Geoff Whitfield


Sim,

Yes, you're right.

I cannot claim the principal expenditure items on my tax returns. But I can claim the interest on borrowings for principal expenditure items- as long as they are for income producing purposes.

Thanks for the clarification.

Geoff