Interest Deduction and Martial Seperation

[Boy-in-Blye]

Hi All,

Appears my other half and i are seperating. She only wants what she put into the relationship, being about $40k or so.

We have three properties together all recently constructed.

What are the tax implications if i borrow to buy her out? It seems logical to me that if i borrow to buy her out, then i'm buying her share in the investments, and hence i'm borrowing to invest.... ultimately allowing me to claim the interest as a tax deduction.

Tried searching, but I mustnt be using the correct key words!

Thanks

 

[FletcherTax]

You will be borrowing in order to attain (or keep attaining) assessable income from your investments, so yes that should be fine. Just make sure you don't taint the loan with any other private expenditure.

Fletcher Tax Accountants