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Edited version of your written advice
Authorisation Number: 1051419543893
Date of advice: 22 August 2018
Ruling
Subject: Investment loan deductions
Question
Are you entitled to a deduction for the interest expenses you incur in respect of your new loan?
Answer
Yes. It is accepted these expenses meet the requirements in Taxation Ruling TR 95/25 as the purpose and use of the new loan remains referable to the acquisition of your ownership interest in your rental property.
This ruling applies for the following period:
Year ending 30 June 2019
Year ending 30 June 2020
Year ending 30 June 2021
The scheme commences on:
1 July 2018
Relevant facts and circumstances
You jointly own an investment property with your spouse.
You plan to borrow $XXX against your residential home and use these funds to refinance your existing investment loan.
This new loan will be solely for investment purposes.
Relevant legislative provisions
Income Tax Assessment Act 1997 Section 8(1)