Hi there,
If you had an LOC set up against an IP, would there be any problems with using it to pay for property expenses like body corporate, rates etc., (but not interest, so there is no interest capitalisation), while putting all rent and salary payments into an offset account against the home mortgage?
Effectively your loan against the IP could keep getting bigger, while your home mortgage is being reduced by the cumulative total of the rates/BC/maintenance/property management fees etc, which I suppose people would normally pay out of their savings/offset accounts.
Is there any legislation or rulings which indicate that if you are claiming interest borrowings for ongoing costs as an expense, then you should be paying your rent into that same account to offset the costs?
Looking forward to people's thoughts.
Thanks in advance.
TOD
If you had an LOC set up against an IP, would there be any problems with using it to pay for property expenses like body corporate, rates etc., (but not interest, so there is no interest capitalisation), while putting all rent and salary payments into an offset account against the home mortgage?
Effectively your loan against the IP could keep getting bigger, while your home mortgage is being reduced by the cumulative total of the rates/BC/maintenance/property management fees etc, which I suppose people would normally pay out of their savings/offset accounts.
Is there any legislation or rulings which indicate that if you are claiming interest borrowings for ongoing costs as an expense, then you should be paying your rent into that same account to offset the costs?
Looking forward to people's thoughts.
Thanks in advance.
TOD
