Private ruling: Deductions
Date of advice: 8 May 2019
Published: June 2019
Ruling period: Year ended 30 June 20XX | Year ended 30 June 20XX | Year ending 30 June 20XX | Year ending 30 June 20XX | Year ending 30 June 20XX
Date scheme commenced: 1 March 20XX

Ruling: Q1: Are your interest expenses deductible? | A1: Yes. The interest expenses you incur relate to your rental property and are deductible. The Commissioner is satisfied the link between the purpose of the loan at establishment and its current form has not been broken. Further information about rental property expenses can be found by searching 'QC 55249' on ato.gov.au

Relevant facts and circumstances: You purchased the Property and financed through interest only loans with a bank The Property was sold and net proceeds of were applied to offset the loan, leaving a loss and you did not have the funds to pay out loan. You refinanced the loan to a principal and interest repayment structure and you are making more than minimum repayments in paying off the loan

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