Payment of solicitor/building/pest fees

[Bantam Roosta]

I think this is a dumb question, but my mind is a mess and I keep confusing myself.

I'm using $40k of a $45k LOC for a deposit. If I use the other $5k for other costs such as solicitor fees, building and pest inspections etc, does this have the same deductibility as using the LOC for the deposit?

I just want to make sure I'm not mixing the LOC up. All expenses are for the same IP purchase.

BR

 

[Heinz57]

I think you are all good. Smarter people than me will now tell you why

 

[Paul@PFI]

Hey Rooster.. I thinking a word starting with c...ok

Yes. No worries. There is no such thing as a dumb question. Dummies dont ask. All those cost of acquistion are deductible. On loan the interest is OK.

A smart alternative ?? Find a good tax person who can answer your questions. One who doesnt charge by the minute. Thats why I frequesnt SS. The non-conventional tax guy. Dont think of cost - Think value. I'm always happy to discuss things on phone for no cost.

You have kept loan seperate. Good.

 

[Terry_w]

Interest on a loan used for investment expenses is usually deductible.

 

[Paul@PFI]

"usually" deductible.....?

 

[Terry_w]

Poor wording. Interest is deductible on a loan used for investment purposes, but sometimes people stuff it e.g by transferring borrowed funds to a cheque account to write a cheque - and lose the deductibility.

 

[Bantam Roosta]

Thanks guys. My intent is to pay the bills directly from the LOC.

BR