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Edited version of your written advice
Authorisation Number: 5010053354606
Date of advice: 18 October 2018
Subject: Interest deduction
Question
Will your interest expenses be deductible when you start renting out your main residence?
Answer
Yes.
The interest expenses you will incur relate to a rental property and will be deductible. Further information about rental property expenses can be found by searching 'QC 55249' on ato.gov.au
This ruling applies for the following period:
Year ending 30 June 20xx
Year ending 30 June 20xx
Year ending 30 June 20xx
Year ending 30 June 20xx
Year ending 30 June 20xx
The scheme commences on:
1 July 20xx
Relevant facts and circumstances
Your spouse owns property (the Property) which is their main residence.
Your spouse owned the Property prior to them becoming your spouse.
Since becoming spouses you have made the Property your main residence.
You plan to take out a loan and purchase half of the Property from your spouse.
The purchase will be made based on a market valuation of the Property.
Your spouse and yourself then intend to purchase a new main residence keeping the Property as an investment and renting it out.
Relevant legislative provisions
Section 8-1 of the Income Tax Assessment Act 1997