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ensuring deductibility of development fees

Discussion in 'Accounting & Tax' started by sandyfeet, 21st Sep, 2016.

  1. sandyfeet

    sandyfeet Well-Known Member

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    19th Jun, 2015
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    Location:
    South Coast NSW
    Hi all,

    I will call the local water authority tomorrow but thought I would get feedback from the PC crowd first of all.

    We are preparing our next DA and we have about $17k in water fees and we want to ensure the deductibility of interest. The forms require credit card details in order to pay the fees. I am hoping this is not the only way that we can pay, otherwise how can we claim interest? I am assuming you can not pay the credit card off the same day the fees are paid from an equity release and claim the interest.

    Thanks!
     
  2. LifesGood

    LifesGood Home Building & Development Consultant Business Member

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    Location:
    Perth WA
    Sounds like a question for an accountant however, my ASSUMPTION would be that as long as you have a logical and clear paper trail you can make the payments as you suggested?
     
  3. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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  4. sandyfeet

    sandyfeet Well-Known Member

    Joined:
    19th Jun, 2015
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    Location:
    South Coast NSW
    thanks LG and terry,

    so it seems pretty straight forward, even if we only have one credit card:

    1. pay CC balance off before incurring investment expense
    2. pay investment expense
    3. pay CC off straight away from relevant investment account

    is this sequence correct? thanks
     
  5. Scott No Mates

    Scott No Mates Well-Known Member

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    3. pay credit card from loan account not investment funds/cash
     
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  6. LifesGood

    LifesGood Home Building & Development Consultant Business Member

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    Location:
    Perth WA
    There's a Terry Tax Tip for everything!
     
    Terry_w likes this.