Private ruling: Interest deductions
Date of advice: 18 December 2018
Published: April 2019
Ruling period: Year ended 30 June 20YY
Date scheme commenced: 1 July 20XX

Ruling: Q1: Am I entitled to claim all expenses from an investment property from the date of the court order? | A1: Yes In your case, it is considered that the court order has altered the equitable ownership of the property as at the date of the order. Accordingly, you are entitled to 100% of the net income or loss from the property from the date of the order, as per your equitable interest.

Relevant facts and circumstances: You and your former spouse owned an investment property. You and your former spouse each held a 50% interest in the property. You divorced your spouse and a settlement agreement reached and an order issued by the shortly after. Under the agreement the investment property that had been owned jointly with your ex-spouse was to be transferred to your name. You also became solely responsible for all income and expenses relating to this property. You also transferred another property to your name but have since occupied this property as your principal place of residence. You were only recently able to transfer the title of this property due to the need to refinance. At the time of divorce, your personal situation was different than at present and this did not allow you to transfer both properties into your name until then.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 6-5 | Income Tax Assessment Act 1997 section 8-1