From: Alan Hill
Just spotted this article by Business Editor David Potts:
"In a breakthrough for mum and dad investors and a blow to the ATO, the Federal Court has ruled that interest on a split home loan used for investment is a legitimate deduction.
It is also a boost for negative gearing, showing that interest on interest can be tax deductible.
Split loans, which allow you to pay off your residence quickly and defer payments on an investment property, took off in the mid-1990's before the Tax Office torpedoed them with a ruling five years ago.
Overturning an earlier ruling, the decision means repayments on an investment property can be postponed until your home is paid off, and the interest is tax deductible.
It could also have ramifications for small business owners who allow their overdrafts to build up so they can afford a holiday or pay other bills."
Interesting......any comments Dale, Rolf etc.
Just spotted this article by Business Editor David Potts:
"In a breakthrough for mum and dad investors and a blow to the ATO, the Federal Court has ruled that interest on a split home loan used for investment is a legitimate deduction.
It is also a boost for negative gearing, showing that interest on interest can be tax deductible.
Split loans, which allow you to pay off your residence quickly and defer payments on an investment property, took off in the mid-1990's before the Tax Office torpedoed them with a ruling five years ago.
Overturning an earlier ruling, the decision means repayments on an investment property can be postponed until your home is paid off, and the interest is tax deductible.
It could also have ramifications for small business owners who allow their overdrafts to build up so they can afford a holiday or pay other bills."
Interesting......any comments Dale, Rolf etc.
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