This question is about expenses you incurred in earning any dividend and similar investment income you declared at item 11.
You must also complete this item if you had a listed investment company (LIC) capital gain amount in your dividends.
Your expenses may include:
- management fees and fees for investment advice relating to changes in the mix of your investments
- interest charged on money borrowed to purchase shares or similar investments
- costs relating to managing your investments, such as travel and buying specialist investment journals or subscriptions.
Show any expenses incurred in earning trust and partnership distributions at X and Y item 13 on your tax return.
Do not show expenses incurred in earning foreign source dividends at this item. They are taken into account at item 20 or D15 on your tax return.
Did you have any dividend deductions?
Answering this question
You will need your dividend statements showing any LIC capital gain amount. (Show dividends received from a LIC at item 11.)
If you had any joint share investments or similar investments, show only your share of joint expenses. This will be half if you held the investment equally with one other person. Keep a record of how you worked out your proportion if you and the other investors did not share the expenses equally.
If you borrowed money to purchase assets for your private use and income-producing investments, you can claim only the portion of the interest expenses relating to the income-producing investments.
Interest on investments under a capital protected borrowing may not be fully deductible.
You can also claim a proportion of the decline in value of your computer based on the percentage of your total computer use that related to managing your investments. If you used your computer to manage your investment in both interest-earning investments and investments in shares or similar securities then you can claim only the proportion of the decline in value related to managing those investments once. You can claim the amount at either item D7 or D8.
You cannot claim expenses you were charged for drawing up an investment plan unless you were carrying on an investment business, in which case you would claim any expenses at item P8 on the Business and professional items schedule for individuals 2016: if this applies to you, then you must lodge your tax return using myTax or a registered tax agent.
If you were an Australian resident when a LIC paid you a dividend and the dividend included a LIC capital gain amount, you can claim a deduction of 50% of the LIC capital gain amount. The LIC capital gain amount will be shown separately on your dividend statement.
If you incurred particular types of expenses, such as interest on borrowed money, relating to certain overseas investments (or investments in Australia if you were a foreign resident) your claims may be affected by the thin capitalisation rules. These rules may apply if the total of your debt deductions and those of your associates is more than $2 million for 2015-16.
Completing your tax return
Add up all your deductions for this item.
Write the total amount at H item D8.
- You and your shares 2016 (NAT 2632)
- Guide to depreciating assets 2016 (NAT 1996) if you are claiming a deduction for the decline in value of your computer.