Loan interest tax deductions

From: Patrick Bruadair


A question on loan interest tax deductions.

I understand that interest on loans for income producing assets is deductible e.g. IP purchase, share purchase. What about the various expenses associated with these income producing assets? If an investor uses a redraw or LOC facility to pay for expenses such as wealth creation seminars (e.g. options trading or real estate purchase)plus associated travel, computer hardware/software, stationary, Jan Somers and other investment books, Shire and water rates for IPs, accountants fees etc etc., is this interest deductible?. Could be worth a bit if it is.

Rgds

Pat
 
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Reply: 1
From: Dale Gatherum-Goss


Hi Patrick

Yes, if the money is used to pay income related expenses, it is tax deductible. Therefore, if that money was borrowed money then the interest should also be tax deductible.

Dale
 
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