From: Anne-Marie H
My understanding is that interest on a loan
for an IP that will produce income (rental)
is tax deductible.
If you use equity to jointly fund a
development project (eg. unitholder of a
trust or joint venture) with the sole object
of producing income on sale (profit), is the
interest on this income also tax deductible?
If it is, can you claim it in the financial
year that you pay it, or do you have to wait
until realization of the profit?
If it is not deductible, presumably when you
do sell you can deduct all the interest
regardless of which year it was paid in from
the profit before you pay CGT on it?
Thanks
A
My understanding is that interest on a loan
for an IP that will produce income (rental)
is tax deductible.
If you use equity to jointly fund a
development project (eg. unitholder of a
trust or joint venture) with the sole object
of producing income on sale (profit), is the
interest on this income also tax deductible?
If it is, can you claim it in the financial
year that you pay it, or do you have to wait
until realization of the profit?
If it is not deductible, presumably when you
do sell you can deduct all the interest
regardless of which year it was paid in from
the profit before you pay CGT on it?
Thanks
A
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