Private ruling: Investment loan deductions
Date of advice: 22 August 2018
Published: October 2018
Ruling period: Year ending 30 June 2019 | Year ending 30 June 2020 | Year ending 30 June 2021
Date scheme commenced: 1 July 2018

Ruling: Q1: Are you entitled to a deduction for the interest expenses you incur in respect of your new loan? | A1: Yes. It is accepted these expenses meet the requirements in Taxation Ruling TR 95/25 as the purpose and use of the new loan remains referable to the acquisition of your ownership interest in your rental property.

Relevant facts and circumstances: You jointly own an investment property with your spouse. You plan to borrow $XXX against your residential home and use these funds to refinance your existing investment loan. This new loan will be solely for investment purposes.

Relevant legislative provisions: Income Tax Assessment Act 1997 Section 8(1)