ensuring deductibility of development fees

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!

 

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?

 

A credit card is a loan - which could be refinanced.

See
Tax Tip 12: Credit Cards and Tax Issues https://propertychat.com.au/community/threads/tax-tip-12-credit-cards-and-tax-issues.2614/

 

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

 

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

 

There's a Terry Tax Tip for everything!