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Normanby
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Ditto MikeF, mixing business an personal debt muddies the calculations. When a client tells me “that second split on the mortgage was mostly business” I get nervous.
If we can’t split the business and personal in an easily documented way, then we can’t be sure we’ll get away with it in the event of an audit.
So I recommend getting a separate loan for the business activities. It’s no problem to have the debt secured by a personal asset, like your home, and get home loan interest rates, just don’t use the borrowed money for anything but business.
Cheers,
Matt
Accountant
http://www.nohassleaccounting.com.au