Is this sufficient for tax claiming or does the line of credit have
to have segmented or separate accounts?
Q.
I have a line of credit, which in total has my residence, some
business finance and an investment property loan. My salary gets
paid into the same account and all expenses are paid from the
account. By analysis, I can clearly apportion between personal,
business and investment property. Is this sufficient for tax
claiming or does the line of credit have to have segmented or
separate accounts?
A.
Your accountant will be able to give you a definitive answer,
but I am concerned that you could find yourself with problems
because it would appear to be extremely difficult to apportion the
interest eg. if the home loan was $179,000 and the investment loans
totalled $331,000 how could you identify the interest savings made
by a deposit of say $5,000. And what would be the effect on the
interest on the different loans if you made a withdrawal of $4,000
for living expenses? My advice is to keep the investment loans
strictly separate from the non-deductible housing loan.
Each week financial advisor Noel Whittaker answers your
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