As part of some necessary extensions on our PPOR we have installed ducted reverse cycle A/C. We are paying for it using a credit card (since we can and it didn't make any difference to the final price than if we had paid cash).
Point is we have a mortgage with an offset account; we've managed over the last few years to keep the offset account cashed up to close to the outstanding loan amount, so not paying much interest currently, but want to keep the loan account up as much as possible to preserve the potential for deductibility should it ever become an IP. We would like to include the $9-odd K that the A/C is costing in that loan.
Is it sufficient (as in, would it withstand scrutiny), for deductibility purposes, to draw down the exact amount paid for the A/C from the loan, and deposit that in the credit card account before it comes due? In that way it has always been 'financed'...
Point is we have a mortgage with an offset account; we've managed over the last few years to keep the offset account cashed up to close to the outstanding loan amount, so not paying much interest currently, but want to keep the loan account up as much as possible to preserve the potential for deductibility should it ever become an IP. We would like to include the $9-odd K that the A/C is costing in that loan.
Is it sufficient (as in, would it withstand scrutiny), for deductibility purposes, to draw down the exact amount paid for the A/C from the loan, and deposit that in the credit card account before it comes due? In that way it has always been 'financed'...
