LOC/credit card

[dink]

My stupid question for today is how do I use a LOC to fund the small stuff?

The scenerio is that I trot off to bunnings to grab some stuff for IP and I pay by credit card. Judging by the comments from this thread, I cannot "reimburse myself" by transferring the funds from LOC to credit card. How would I go about this to make the credit card purchase tax deductible?

If it makes any difference, the credit card has been used to purchase personal items in the past and the debt has been paid off.

Thanks

 

[PI141]

I have a Debit card attached to my LOC so its already done.

 

[zargor1]

You should be OK, Dink.

The main thing is that you are reimbursing "deductible" expenses, not private expenses, so if you were to look at all the drawings on your LOC, they should be easily relateable to your IP and interest deductible.

The issue comes when you use your LOC to reimburse private expenses.

Zargor

DISCLAIMER

This is not advice, just a comment.

 

[boods99]

I have a Debit card attached to my LOC so its already done.

Same here, I can access my LOC from my credit card...
Boods

 

[65fbk]

It's only an issue if you want to claim the interest accrued on the purchase???

If not, just keep the receipt and give it to the accountant at tax time.

 

[dink]

I have a Debit card attached to my LOC so its already done.

Doh! Why didn't I think of this?

Thanks all