Raycasting - 1 unit up y axis - but its drawing no the ground?

Hi guys. Im wondering if anyone can shed me some light on why this is happening.

Code (CSharp):

1.             Vector3 direction = c.t.position - transform.position;
2.             Debug.DrawRay(transform.position, direction, Color.red);
3.             if(Physics.Raycast(transform.position, direction, out hit, castDistance)){
4.                 if (hit.collider.transform == c.t) {
5.                     Debug.DrawRay(transform.position, direction, Color.red);
6.                 }
7.             }

its drawing in the correct direction, but both object transforms are up 1 unit on the y axis, and yet, the line is being drawn on the 0 unit. the floor.

 

The only thing I can think of is you have an offset on your box collider.

 

Can you show the object in the inspector that this is happening too?