DOMJAN v FC of T, Administrative Appeals Tribunal of Australia (ACT), 05 August 2004 is considered a case of interest (no pun intended) when discussion about blended loans comes up. I had reason to revisit this AAT case recently and it provides some insights into reasons why taxpayers should not blend loan money with ANY other money (including other borrowed money). In Domjan blending become a mess...and the ATO and the AAT diligently considered all the arguments and reconstructions. Transcript of the appeal is summarised here : The importance of not blending loan proceeds with ANY other money is demonstrated in the details. The case also highlights the degree of diligence the ATO and AAT will go to for what can be trivial sums on first review. In the Domjan case the scheme to have the PM classify the vanity replacement as a hot water repair was detected by the ATO. An attempt to access a $165 deduction was investigated and diligently explored.