If we use LOC against PPOP to pay for an IP, we can claim tax deduction for LOC interest. Is it correct?
However, I wonder how we use LOC to pay for an IP at the settlement date. There are the possible payment methods:
1. At the settlement date, use LOC to buy a bank cheque and present it to the conveyancer.
2. Transfer the fund from LOC to a bank account, then use that bank account to buy a bank cheque and present it to the conveyancer.
3. Transfer the fund from LOC to a bank account, then use that bank account to pay directly to vendor (if the loan account and the bank account in the same bank i.e. CBA)
With the payment methods above, I wonder if there are any troubles for interest tax deduction claiming from the ATO perspectives.
Any other suggestions or different payment methods suggested
Thanks
However, I wonder how we use LOC to pay for an IP at the settlement date. There are the possible payment methods:
1. At the settlement date, use LOC to buy a bank cheque and present it to the conveyancer.
2. Transfer the fund from LOC to a bank account, then use that bank account to buy a bank cheque and present it to the conveyancer.
3. Transfer the fund from LOC to a bank account, then use that bank account to pay directly to vendor (if the loan account and the bank account in the same bank i.e. CBA)
With the payment methods above, I wonder if there are any troubles for interest tax deduction claiming from the ATO perspectives.
Any other suggestions or different payment methods suggested
Thanks
Payment methods for the IP by LOC?
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