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From: Donna Larcos
I keep getting conflicting advice on this
one. If you use an equity loan to pay
expenses on IP and mortgage
repayments, can you claim the interest on
the equity loan as a deduction as well?
I.E. the balance of the equity loan is
growing with the expenses and mortgage
interest and I am then being charged
interest on this?? Some accountants
seem to say it is OK to borrow to pay
expenses such as levies, rates etc but
not the mortgage payments but I have
other friends who use the rental income
to pay down their personal loans and
borrow from an equity loan to pay their IP
expenses and mortgage and then claim
the increasing interest.
Who is right? What are others doing??
Any help, particularly from an IP
accountant, would be most welcome.
Donna
I keep getting conflicting advice on this
one. If you use an equity loan to pay
expenses on IP and mortgage
repayments, can you claim the interest on
the equity loan as a deduction as well?
I.E. the balance of the equity loan is
growing with the expenses and mortgage
interest and I am then being charged
interest on this?? Some accountants
seem to say it is OK to borrow to pay
expenses such as levies, rates etc but
not the mortgage payments but I have
other friends who use the rental income
to pay down their personal loans and
borrow from an equity loan to pay their IP
expenses and mortgage and then claim
the increasing interest.
Who is right? What are others doing??
Any help, particularly from an IP
accountant, would be most welcome.
Donna
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