using loc to pay B.A

[emu]

My LOC"s are used for income producing purposes only, so can i use a loc to fund the payment of a buyers agent and is the interest tax deductable on the loc?

I am aware that using a buyers agent is a capital cost but does the ATO view their service as a "income producing cost" to an investor.

Your words of wisdom are appreciated.
Thanks
Ken

 

[Cheeks]

I have done this.

As far as I'm concerned it is a legitimate purchasing cost so the interest is deductible.

 

[DaleGG]

Hi Ken

Your idea is perfectly alright. The BA costs are capital, but, using the LOC to do this is akin to using the LOC to pay a deposit. It is done all the time.

Have fun

Dale

 

[emu]

Thanks dale and cheeks