Can credit cards be tax deductible?

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

 

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.

 

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.

 

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

 

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?

 

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

 

Nice to hear it confirmed again, thanks.