Don't claim deductions for private spending

Don't claim deductions for private spending
Michael LaurenceJuly 8, 2013

Investors often take a line-of-credit loan with the intention of using the money to buy a rental property but then spend part of the loan to buy, say, a car or a boat.

However, you are only entitled to deductions for loans to finance assets that earn or are intended to earn a taxable income.

“My advice,” says Eddie Chung, partner and property tax specialist with accountants BDOin Brisbane, “is to separate loans that are used for different purposes.”

“Otherwise, you may need to apportion the interest on the loan, which is time consuming.”

See our free ebook on the top 24 tax strategies for property investors.

Editor's Picks

First home buyers jump at Victoriana apartments on Melbourne's Albert Park
Sekisui House Australia approved for Dawn, the latest stage at $5 billion Melrose Park masterplan
Safari Group’s Mountain Oak Apartments brings new investment potential to Queenstown
Aurora On Depper, St Lucia: Construction Update
R.Iconic: A Lifestyle-First Masterpiece in Melbourne