Hi all, I've just set a LOC for investing into funds. The bank has currently got it set up with interest payments being debited from the LOC account itself. ie, interest is compounding; i think it is also called capitalising interest? i am a little unsure about whether interest needs to be paid using a different account (eg, offset or savings) instead of compounding. Since i intend to negative gear - i don't want any hassles with ATO For those who have successfully negative geared in the past using similar structures, would you kindly share how you are doing your interest payments. Thanks in advance, PS: i will be checking with my accountant . but thought it better to hear from others too...thanks!