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Edited version of private advice
Authorisation Number: 1051762813815
Date of advice: 28 October 2020
Ruling
Subject: Investment property deductions
Question
Is the interest on an amount, which was used for the deposit on the purchase of an investment property, an allowable deduction?
Answer
Yes. The interest expenses you incur relating to your rental property are deductible. Further information about rental property expenses can be found by searching 'QC 55249' on ato.gov.
This ruling applies for the following period:
Year ended 30 June 20XX
The scheme commences on:
1 July 20XX
Relevant facts and circumstances
You obtained a fixed rate investment loan.
The loan was approved and the funds deposited into your account early 20XX.
You transferred the funds to another account on the same day in order to keep them separate.
An amount was used for settlement on an investment property.
The property settled mid 20XX.
The amount was a portion of the loan amount.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 8-1