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Can credit cards be tax deductible?

Discussion in 'Property Finance' started by Paterson00, 9th Jun, 2016.

  1. Paterson00

    Paterson00 Well-Known Member

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    Hi all,

    I am currently at the point where my buffer is low and have a job I need to tend to on one of my IP's. I can put the work on a credit card and then pay that off with a tax rebate so I am fine there but if there is any interest accrued on the card during that time would that become tax deductible as a cost of doing business just like the interest on a mortgage etc?

    Thanks all,

    Paul
     
  2. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    A credit card is just a loan facility so the normal rules apply - which means 'yes' to your question, but you still have to consider mixed loan issues etc.
     
  3. Paterson00

    Paterson00 Well-Known Member

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    Thank you Terry. I did wonder about that too. I have a little bit on my CC at the moment for "pleasure debt" so I will need to clear that first before the job gets taken care of or it may become too messy to prove the interest is cleanly deductible.
     
  4. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    I won' ask what sort of 'pleasure debt' that was for but best not to mix business and pleasure.
     
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  5. Paterson00

    Paterson00 Well-Known Member

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    Ha ha, and my wife never see's the statements;). In all seriousness, it is just as we are transitioning through a lot of changes at the moment and got caught short. I only actually have the CC as it may help obtain a better loan later down the line. It is the ANZ one and I am told that if I hold it for 6 months I will then qualify for a better rate with them should I want it. With one of our attempts on purchasing a kennel block recently at $765k I was told that I would have been accepted by ANZ at 95% LVR if I had run this path of six months with the card before applying. Not sure if that is true but what harm can it do to have a $1000 limit for 6 months so long as it is looked after?
     
  6. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Yes ANZ can lend 95% to existing customers - a CC can mean you are existing
     
  7. Paterson00

    Paterson00 Well-Known Member

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    Nice to hear it confirmed again, thanks.
     
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