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Edited version of private advice
Authorisation Number: 1051511935146
Date of advice: 8 May 2019
Ruling
Subject: Deductions
Question
Are your interest expenses deductible?
Answer
Yes.
The interest expenses you incur relate to your rental property and are deductible. The Commissioner is satisfied the link between the purpose of the loan at establishment and its current form has not been broken. Further information about rental property expenses can be found by searching 'QC 55249' on ato.gov.au
This ruling applies for the following periods:
Year ended 30 June 20XX
Year ended 30 June 20XX
Year ending 30 June 20XX
Year ending 30 June 20XX
Year ending 30 June 20XX
The scheme commences on:
1 March 20XX
Relevant facts and circumstances
You purchased the Property and financed through interest only loans with a bank
The Property was sold and net proceeds of were applied to offset the loan, leaving a loss and you did not have the funds to pay out loan.
You refinanced the loan to a principal and interest repayment structure and you are making more than minimum repayments in paying off the loan
Relevant legislative provisions
Income Tax Assessment Act 1997 Section 8-1