Forums / Getting Technical / Legal & Accounting / Using personal credit card to pay for IP rates.

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  • Profile photo of simonkwsimonkw
    Member
    @simonkw
    Join Date: 2011
    Post Count: 2

    I am in a dilemma whether should I use my personal credit cards to pay my IP rates (thereby earning points) or to just let my PM pays the rates (thereby saving the hassle of of paying it myself and receiving a nice statement at the end of the year. What do you guys do?

    Also will IP rates mingling with personal expenses cause further headache? I think I read somewhere that the rates being paid that way may be consider personal and thereby losing the tax duductibility.

    Any comments?

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,190

    get the points.

    No issues if you pay off your card in full each month as there will be no interest to claim

    Terryw | Structuring Lawyers / Loan Structuring Pty Ltd
    http://propertytaxbook.com.au/
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Aust wide) http://propertytaxbook.com.au/

    Profile photo of Jamie MooreJamie Moore
    Participant
    @jamie-m
    Join Date: 2010
    Post Count: 5,069

    Agree with Terry – get your points where you can. After a couple of years you'll be able to get a new toaster :-)

    No, I'm joking – we usually use our points once every year or two to fund part of a holiday (flights, etc)

    Cheers

    Jamie

    Jamie Moore | Pass Go Home Loans Pty Ltd
    http://www.passgo.com.au
    Email Me | Phone Me

    Mortgage Broker assisting clients Australia wide Email: [email protected]

    Profile photo of PLCPLC
    Participant
    @plc
    Join Date: 2012
    Post Count: 400

    Yep, an expense is an expense, and it doesn't matter with what funds it's paid with. It's when you try to claim any interest that might be associated with the expense that will need scrutinising.

    Cheers

    Tom

    PLC | Phoenix Loan Consulting
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    Melbourne based Mortgage Broker | Making Finance Simple

    Profile photo of DAMPropertyDAMProperty
    Participant
    @damproperty
    Join Date: 2011
    Post Count: 44

    Also think about the credit card fees.  Some rates and other utilities charge fees if you pay by credit card.  Weigh up the cost of the credit card fees against the amount of points you get. 

    DAMProperty | DAM Accounting Services
    https://www.damaccountingservices.com.au

    Profile photo of Mick CMick C
    Participant
    @shape
    Join Date: 2010
    Post Count: 1,099

    I always use my CC to pay for all bills, including my IP's bills – Free travel FTW :)

    Mick C | Shape Home Loans
    http://www.shapehomeloans.com.au/
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    Same Banks. Better Rates. Served With a Passion.

    Profile photo of simonkwsimonkw
    Member
    @simonkw
    Join Date: 2011
    Post Count: 2

    Thanks everyone for the comments. I'll go with credit card then.

    I have 2 credit cards – Coles (no fee) and the Woolies credit card which I call them yearly to ask them to waive the annual fee. I always pay off my credit card on time. Given any sort of fee as oppose to collecting points, my mantra is saving on hard-earned cash is better than any reward points. Reward points is a bonus. :)

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