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This edited version has been archived due to the length of time since original publication. It should not be regarded as indicative of the ATO's current views. The law may have changed since original publication, and views in the edited version may also be affected by subsequent precedents and new approaches to the application of the law.

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Edited version of your written advice

Authorisation Number: 1051300072650

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You cannot rely on this edited version in your tax affairs. You can only rely on the advice that we have given to you or to someone acting on your behalf.

The advice in the Register has been edited and may not contain all the factual details relevant to each decision. Do not use the Register to predict ATO policy or decisions.

Date of advice: 26 October 2017

Ruling

Subject: Income and deductions for business

Question 1

Are you entitled to a 100% deduction for the expenses you incur for the property that is used in your business under section 8-1 of the Income Tax Assessment Act 1997 (ITAA1997)?

Answer

Yes.

Section 8-1 of the ITAA 1997 allows a deduction for any loss or outgoing to the extent that it is necessarily incurred in carry on of a business for the purposes of gaining or producing your assessable income. In this case you incur expenses in relation to the property you jointly own with your spouse, these expenses are necessarily incurred to produce your assessable income therefore you are entitled to a full deduction. Further information on deductions can be found on our website ato.gov.au and entering Quick Code QC33872 into the search bar at the top right of the page.

This ruling applies for the following period:

30 June 2018

The scheme commences on:

1 July 2017

Relevant facts and circumstances

You are a sole trader and operate your own business.

You and your spouse, as joint tenants, purchased a building together to operate your business from. You each contributed to the deposit toward this building which was from your joint savings.

To acquire this asset you obtained a small business loan in your legal name trading as the business name. Your spouse is also a guarantor for this business loan.

Your spouse does not have any involvement with the business or the repayment of this business loan. Your spouse has full-time employment on their own accord.

The business has its own bank account and is separate to your joint account with your spouse.

You are solely responsible for the:

Relevant legislative provisions

Income Tax Assessment Act 1997 Section 8-1.

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