Private ruling: Rental deductions
Date of advice: 24 June 2025
Published: 18 August 2025
Date scheme commenced: X July 20XX

Ruling: Q1: Is the interest incurred deductible pursuant to section 8-1 of the Income Tax Assessment Act 1997 (ITAA 1997)? | A1: Yes - the interest on the loan has the relevant nexus to the earning of assessable income to enable you to claim a deduction for the loan under section 8-1 of the ITAA 1997. This private ruling applies for the following period: Year ending X June 20XX. Year ending X June 20XX. Year ending X June 20XX. Year ending X June 20XX. The scheme commenced on: X July 20XX


Relevant legislative provisions: Income Tax Assessment Act 1997 section 8-1


You purchased a block of land in February 20XX as part of a bulk land deal. | You signed a residential building contract ('the contract') in March 20XX with the building company. | The contract stipulated that the building works must reach the stage of practical completion no more than X weeks after the building period commences. | In August 20XX, you received correspondence of the building company's intention not to exercise the contractual rights contained in the contract as they had gone into administration. | You signed a contract with a second building company to complete the building works in December 20XX. | The block was divided into two blocks and a property was built on each. | The two properties were advertised for rent in May 20XX. | Tenants subsequently moved into the properties in or around August 20XX. | You received the 'Occupation Certificate' in September 20XX. | Throughout this process, you incurred interest on the loan totalling $XX.