Document ID: chunk:federal_register_of_legislation:C2025C00029:section:6:p7
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 6 (pt 7/9)
Character Range: 352215–354738

result is $6.50 multiplied by 183 days = $1,189.94.

Meaning of period of the loan
 (5) The period of the loan is the shortest of these periods:
 (a) the period of the loan as specified in the original loan contract;
 (b) the period starting on the first day on which the money was borrowed and ending on the day the loan is repaid;
 (c) 5 years starting on the first day on which the money was borrowed.

When deduction not spread
 (6) If the total of the following is $100 or less:
 (a) each amount of expenditure you incur in an income year for *borrowing money you use during that income year solely for the *purpose of producing assessable income;
 (b) for each amount of expenditure you incur in that income year for borrowing money you use during that income year only partly for that purpose—the proportion of that amount that is appropriate having regard to the extent that you use the money during that income year for that purpose;
you can deduct for the income year:
 (c) each amount covered by paragraph (a); and
 (d) each proportion covered by paragraph (b).

25‑30  Expenses of discharging a mortgage

Mortgage for borrowed money
 (1) You can deduct expenditure you incur to discharge a mortgage that you gave as security for the repayment of money that you *borrowed if you used the money solely for the *purpose of producing assessable income.

Mortgage for property bought
 (2) You can deduct expenditure you incur to discharge a mortgage that you gave as security for the payment of the whole or part of the purchase price of property that you bought if you used the property solely for the *purpose of producing assessable income.

Money or property used partly for that purpose
 (3) If you used the money you *borrowed, or the property you bought, only partly for the *purpose of producing assessable income, you can deduct the expenditure to the extent that you used the money or property for that purpose.

No deduction for payments of principal or interest
 (4) You cannot deduct payments of principal or interest under this section.

25‑35  Bad debts
 (1) You can deduct a debt (or part of a debt) that you write off as bad in the income year if:
 (a) it was included in your assessable income for the income year or for an earlier income year; or
 (b) it is in respect of money that you lent in the ordinary course of your *business of lending money.
Note: If a bad debt is in respect of a payment that is required to be made under a qualifying security (within the meaning of Division 16E of Part