SUBJECT – Good Debt vs Bad Debt
Hi I'm Barbara Keating, Accountant and small business specialist at MWL Financial Group.
In taxation we talk about good debt and bad debt – so what are we talking about?
Its simple really – good debt refers to that on which the interest is tax deductible and bad debt is that which is not.
Normally debt which was used to purchase a residential property which is now a principal place of residence would probably be considered bad debt as defined but with a strategy where the intention of borrowing can be seen to have changed perhaps it is possible to turn bad debt into good debt. Its all about making the evidence agree to some sort of business or investment purpose. Sound far-fetched – it actually isn’t
For more information contact us at firstname.lastname@example.org and either me, Barbara Keating or one of our experts will be more than happy to help.