Private ruling: Interest expenses for a rental property
Date of advice: 31 October 2017
Published: March 2018
Ruling period: Years ending 30 June 20XX to 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Are you entitled to claim an interest expense deduction for your rental property under section 8-1 of the Income Tax Assessment Act 1997 (ITAA 1997)? | A1: Yes After considering your facts and circumstances, the Commissioner is satisfied that the funds from the loan account were borrowed to purchase an investment property for the purpose of producing assessable income. The interest expenses from the loan account will be deductible to the extent that they are incurred in the production of assessable income. Further information about rental property interest deductions can be found on our website ato.gov.au and entering Quick Code QC23635 into the search bar at the top right of the page.

Relevant facts and circumstances: You purchased an investment property on 20XX. You funded the purchase price of the investment property by way of a loan with a lending institution.

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


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