| Disclaimer This edited version has been archived due to the length of time since original publication.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. You cannot rely on this record in your tax affairs. It is not binding and provides you with no protection (including from any underpaid tax, penalty or interest). In addition, this record is not an authority for the purposes of establishing a reasonably arguable position for you to apply to your own circumstances. For more information on the status of edited versions of private advice and reasons we publish them, see PS LA 2008/4. |
Edited version of your written advice
Authorisation Number: 1051302937123
Disclaimer
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: 31 October 2017
Ruling
Subject: Interest expenses for a rental property
Question
Are you entitled to claim an interest expense deduction for your rental property under section 8-1 of the Income Tax Assessment Act 1997 (ITAA 1997)?
Answer
Yes
After considering your facts and circumstances, the Commissioner is satisfied that the funds from the loan account were borrowed to purchase an investment property for the purpose of producing assessable income. The interest expenses from the loan account will be deductible to the extent that they are incurred in the production of assessable income. Further information about rental property interest deductions can be found on our website ato.gov.au and entering Quick Code QC23635 into the search bar at the top right of the page.
This ruling applies for the following periods:
Years ending 30 June 20XX to 20XX
The scheme commences on:
1 July 20XX
Relevant facts and circumstances
You purchased an investment property on 20XX.
You funded the purchase price of the investment property by way of a loan with a lending institution.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 8-1.