Is it ok to pay my tax bill with LOC?

[D.T.]

But isn't the interest charged by the ATO on overdue taxes deductible?? Would that be the same deal here???

Thought I read that somewhere.

Or maybe I'm getting that confused with the ATO paying the taxpayer interest and they have to declare it as income????

Ive claimed interest charged by ATO as a tax deduction before. Similarly, when they decided to wipe the GIC from my account I had to declare it as income

 

[Paul@PFI]

But isn't the interest charged by the ATO on overdue taxes deductible?? Would that be the same deal here???

Thought I read that somewhere.

Or maybe I'm getting that confused with the ATO paying the taxpayer interest and they have to declare it as income????

Tax Law contains a provision which permits a taxpayer subject to General Interest Charge to claim a deduction for that interest. Its a specific exception to the general rule that a deduction of inteerst incured to borrow funds to pay a tax debt is not deductible. Its doesnt relate to earning income. Its an outcome of earning income. You can read the ATO views here.

Bear in mind that the ATO dont allow you to maintain a debt and will enforce it using Dun & Bradstreet who can add this info to a credit history once they become involved.

 

[HotRod]

Tax Law contains a provision which permits a taxpayer subject to General Interest Charge to claim a deduction for that interest. Its a specific exception to the general rule that a deduction of inteerst incured to borrow funds to pay a tax debt is not deductible. Its doesnt relate to earning income. Its an outcome of earning income. You can read the ATO views here.

Bear in mind that the ATO dont allow you to maintain a debt and will enforce it using Dun & Bradstreet who can add this info to a credit history once they become involved.

There you go. I thought I was going nuts there for a minute.

 

[Paul@PFI]

When does it become a business?? What level portfolio does one need to build to be recognised as a business by the ATO?

Look at IT 2423 also which considers a "property investment business" and suggests a company gives a better claim than that of an individual - The profit making intent ??? The line "a number of properties" but more than 2 isnt much of a indicator...A block of apartments too...Is it 4 or 400 ?? Looking at SMSFR 2009/1 isnt much of a guide as the SIS requirements add a further "wholly and exclusively test". That said it contains example 14 which considers 20 units in a block to be a business.