Cyprus-Forum.com

[Paphitis]

Paphitis wrote:
"All my debt is also tax deductible. "
Im still waiting to hear how his accountant manages to do that!! As a UK qualified ACCA I'm intrigued to know how this is " cooked" and believe me when it came to " cooking" I was a ...top chef !!
By the way if you borrow money from a bank or from any other source you debit Loan account and credit the loan provider , any interest on the loan is then credited to the Loan provider and debited to Interest Payable which then is shown on the P&L account as an expense which is tax deductible.

All my debts are tax deductible because all my debts are against Rental properties and also lines of credit for developing and building or renovating.

Even have a lease car (ute) that is tax deductible. Even my petrol to and from these properties and the family farm in Victoria is tax deductible.

I've been doing this all my life and I can retire on these activities as well if I wanted to. My wife is nagging me to do just that.

All my debts are not under my name. They are under business names and trusts. So I pay company tax rates as well not personal tax rates. And even my children are written up as share holders in what I do but they don't have any administrative power to do anything until I say so.

The only personal liability I have is my credit card. I even use that to buy building materials as well and can claim these with a receipt. I'm not a big time guy, more of a weekend warrior but I do enjoy it and it is a means to an end for me. Plus my sites are managed by a fully licensed builder I have been in business with for over 20 years who manages my projects for a fee (also tax deductible).

[miltiades]

Mate don't carry on making a fool of your self. Debts are NOT tax deductible irrespective of what a debt is used for.
Only the interest can be classed as an expense. A debt in accountancy is classed as a liability, no ifs or buts. You can claim the interest but not the debt itself. This is standard accountancy practice .
If as you say your debts are a million plus and that they are tax deductable then you would not be liable for any tax unless your earnings are way above a million pa.
Now just drop the subject and I shall do the same.

[Paphitis]

Mate don't carry on making a fool of your self. Debts are NOT tax deductible irrespective of what a debt is used for.
Only the interest can be classed as an expense. A debt in accountancy is classed as a liability, no ifs or buts. You can claim the interest but not the debt itself. This is standard accountancy practice .
If as you say your debts are a million plus and that they are tax deductable then you would not be liable for any tax unless your earnings are way above a million pa.
Now just drop the subject and I shall do the same.

Are you stupid or something? Listen up and listen good. I don't know where you got your accounting degree but the interest and fees on my loans are most certainly tax deductible and I have been deducting them for over 20 odd years and never got into any trouble until I made 1 mistake one year and was fined on a technicality which cost me a few thousand.

I never once claimed that the actual principle is claimable.

Only the interest and fees plus lending costs of my liabilities are tax deductible not the entire debt. So if I pay $100K in interest and fees, I can claim these expenses and I do.

But the main thing is, I can borrow to buy a particular asset by cross guaranteeing and using equity in other assets to buy stuff outright with debt which sometimes means negative gearing for that asset and claiming the losses or redistributing them elsewhere to myself usually. I would have to sell property otherwise to cash up and do things like this.

My accountant is always on my case to borrow more.

[miltiades]

Ok, finally you accept that your debts are NOT tax deductible.

[Paphitis]

Ok, finally you accept that your debts are NOT tax deductible.

OMG, that is common sense Yero.

I never said the principle is tax deductible. When I say my loans are good debt or deductible it should be understood that the costs of the loans are deductible.

[miltiades]

Ok, finally you accept that your debts are NOT tax deductible.

OMG, that is common sense Yero.

I never said the principle is tax deductible. When I say my loans are good debt or deductible it should be understood that the costs of the loans are deductible.

On more than one occasion you stated "
All my debts are tax deductible. So stop.lying to impress readers. You do NOT have 7 figure debts. Bullshit just like all other bullshit you post. Have a break and come back in a few years !!

[Paphitis]

Ok, finally you accept that your debts are NOT tax deductible.

OMG, that is common sense Yero.

I never said the principle is tax deductible. When I say my loans are good debt or deductible it should be understood that the costs of the loans are deductible.

On more than one occasion you stated "
All my debts are tax deductible. So stop.lying to impress readers. You do NOT have 7 figure debts. Bullshit just like all other bullshit you post. Have a break and come back in a few years !!

My accountant uses those terms too.

I don't understand what the problem is. You see a normal adult understands perfectly well what is meant by this statement. Even the Banks will define a loan as a tax deductible loan and normal people with a normal IQ understand what that means.

If you do not understand what is meant by that, then quite frankly, I think its time to even stop selling pots and pans.

[miltiades]

Banks say that a loan is ....tax deductible??
My god man, you really do live in a fool's paradise, or ...hell. Banks will NEVER lend anyone money and tell him that " it is tax deductible. Do you have any idea as to how any company prepares a P&L account ?
Do you know what's included on a balance sheet? I doubt it very much.
You also stated that you claim for your petrol. Vehicle running costs can only be claimed if the vehicle was used solely for business purposes, personal use is NOT tax deductible, neither is vehicle depreciation or repairs unless the said vehicle is exclusively used in the course of the business. Using a car to go to work and back is NOT considered as " business travel" although many a accountants will knowingly include such an expense on the P&L Account.
If a borrower uses all or part of a loan to purchase equipment for the exclusive use of a business such expenditure does not qualify as an expense for tax purposes, depreciation and repairs to that equipment are tax deductible but not the cost of plant or equipment.

[Paphitis]

Banks say that a loan is ....tax deductible??
My god man, you really do live in a fool's paradise, or ...hell. Banks will NEVER lend anyone money and tell him that " it is tax deductible. Do you have any idea as to how any company prepares a P&L account ?
Do you know what's included on a balance sheet? I doubt it very much.
You also stated that you claim for your petrol. Vehicle running costs can only be claimed if the vehicle was used solely for business purposes, personal use is NOT tax deductible, neither is vehicle depreciation or repairs unless the said vehicle is exclusively used in the course of the business. Using a car to go to work and back is NOT considered as " business travel" although many a accountants will knowingly include such an expense on the P&L Account.
If a borrower uses all or part of a loan to purchase equipment for the exclusive use of a business such expenditure does not qualify as an expense for tax purposes, depreciation and repairs to that equipment are tax deductible but not the cost of plant or equipment.

They sure do say loans are tax deductible. And what they mean by that is that the costs for loans are tax deductible.

If they got a whiff of you not knowing common sense, they would knock you back as being unfit or lacking common sense. It is illegal for any Bank in Australia to lend anyone ANY money without knowing basic lending procedures, laws and policies or understanding common tax law when entering into a commercial arrangement with them. They would request you seek financial advice because if they didn't they become shark lenders. There is a product disclosure statement and the would even instruct you to seek legal advice before proceeding.

I Bank with a Bank that is in the top 20 global companies on the planet and they do have a duty of care towards their customers despite what people think.

Not only do the Banks say that but so do all the accountants I know and have spoken too.

No one in their right mind means that the principle is deductible and they would laugh and be beside themselves if you said it was.

Another term used is Good Debt Vs Bad Debt.

My debt being tax deductible is classified by all accountants and financial planners and advisors as being good debt because I can claim all my costs against my tax. So in other words, my costs are offset by a considerable amount whereas a mortgage or a home loans is classed as bad debt because you can't claim a thing.

[Paphitis]

This parliament is a Zombie Parliament and has no right to sit and is ineffective.



They are too cowardly to face the electorate. they are too cowardly to have a vote of no confidence.

But the time is coming when they won't be able to prevent Christmas.