Is it ok to use funds from redraw

[slumpMunkey]

To pay for:

council rates
Water bills
Handyman for repairs etc?

Thanks

 

[Rixter]

Redraw from where?

My PM's pay all those expenses for me from rental income collected.

Anything else I use LOC's purely used for investment purposes.

 

[slumpMunkey]

From the redraw facility on the loan.

Would I still be able to claim intrest as a deduction ?

 

[handyandy]

From the redraw facility on the loan.

Would I still be able to claim intrest as a deduction ?

As long as the redraw amounts are spent on investment related expenses then the interest due is deductible.

Cheers

 

[Terry_w]

From the redraw facility on the loan.

Would I still be able to claim intrest as a deduction ?

The investment loan?

Generally you could borrow to pay investment expenses and claim the interest. It just depends how you do it. straight from the loan to the council should be ok. From the loan to a cheque account to the council may not be ok.

 

[Rolf Latham]

The investment loan?

Generally you could borrow to pay investment expenses and claim the interest. It just depends how you do it. straight from the loan to the council should be ok. From the loan to a cheque account to the council may not be ok.

the same assumption would apply to both transaction perhaps ?

Ie, there is ONLY borrowed money in the investment loan and the cheque account.

If tax paid cash has been parked in either it will be difficult to isolate which money was used for what purpose, and what has come from where and gone to where. In that case deductability would be equally difficult to establish from both methods ?


ta
rolf

 

[Terry_w]

the same assumption would apply to both transaction perhaps ?

Ie, there is ONLY borrowed money in the investment loan and the cheque account.

If tax paid cash has been parked in either it will be difficult to isolate which money was used for what purpose, and what has come from where and gone to where. In that case deductability would be equally difficult to establish from both methods ?


ta
rolf

Yes, True Rolf.

Best to only ever use one account for one thing. No mixing please

 

[slumpMunkey]

The investment loan?

Generally you could borrow to pay investment expenses and claim the interest. It just depends how you do it. straight from the loan to the council should be ok. From the loan to a cheque account to the council may not be ok.

yes, on the investment loan. There is a Bpay facility on the redraw

I would use it just for council rates, water and insurance payments only to keep it clear and simple.

it would be easy to match the bpay transaction to the actual bill for referance