From: Marina .
After talking to a few people from the forum and going through various posts I noted that there is a lot of confusion to this question.
After searching the ATO website I found out that Interest on a loan taken out to fund the purchase of vacant land held for future income producing use is deductible under section 8-1.
In the case study it mentioned that it took the taxpayer 4 years to commence construction and in that time all interest was still tax deductible.
ATO ID 2001/307
After talking to a few people from the forum and going through various posts I noted that there is a lot of confusion to this question.
After searching the ATO website I found out that Interest on a loan taken out to fund the purchase of vacant land held for future income producing use is deductible under section 8-1.
In the case study it mentioned that it took the taxpayer 4 years to commence construction and in that time all interest was still tax deductible.
ATO ID 2001/307
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