Claimable Interest during building an IP...

[Legs]

Has anyone actually claimed the interest that was charged from the purchase date of land and during the construction of an IP??

According to ATO ruling TR 2004/4 the interest charged against a loan used for constructing an IP can be deductible if the interest was an outgoing 'incurred in gaining or producing the assessable income', as I understand it. Correct??

http://law.ato.gov.au/atolaw/view.htm?Docid=TXR/TR20044/NAT/ATO/00001&PiT=99991231235958

 

[Propertunity]

Yes, correct.

 

[Legs]

but has anyone successfully done this? Has anyone been challenged by the ATO in regards to a claim such as this.?

 

[Player]

No problem.....so far

but has anyone successfully done this? Has anyone been challenged by the ATO in regards to a claim such as this.?

Have done this and had no challenges. Intent was as an IP from day one and remains an IP to current day. This was done about five years ago. No prolems so far.