I am wondering how I should set interest repayment on my construction LOC. It is the first time I use one so should I
1. Add to LOC, however I saw post earlier about how you can not claim interest on interest, or
2. Debit from another transaction account, however I am not sure if interest adds to LOC, then subtract back from LOC making it look like I am repaying some of the principle which reduce deductibility.
Also later on after construction, will I maintain same tax deductibility to convert the LOC back to cheaper standard variable?
1. Add to LOC, however I saw post earlier about how you can not claim interest on interest, or
2. Debit from another transaction account, however I am not sure if interest adds to LOC, then subtract back from LOC making it look like I am repaying some of the principle which reduce deductibility.
Also later on after construction, will I maintain same tax deductibility to convert the LOC back to cheaper standard variable?