W
WebBoard
Guest
From: Steve Kiddle
Question for the accountants
I buy an IP on Line of Credit account with some surplus for addit borrowings.
Then I pay all property expenses out of LOC account, incl interest while all rental income I take for personal use (deposit into own mortgage)
Is this pushing the rules with the ATO as the result is investment loan up, personal loan down accelerated.
I understand interest on interest is frowned on by ATO, so if I pay this monthly debt from personal funds does this change ATO opinion of the structure
Question for the accountants
I buy an IP on Line of Credit account with some surplus for addit borrowings.
Then I pay all property expenses out of LOC account, incl interest while all rental income I take for personal use (deposit into own mortgage)
Is this pushing the rules with the ATO as the result is investment loan up, personal loan down accelerated.
I understand interest on interest is frowned on by ATO, so if I pay this monthly debt from personal funds does this change ATO opinion of the structure
Last edited by a moderator: