Tax deductibility of interest incurred to acquire trust interests
Fri Oct 19 2007
Taxation in Australia --- Page: 235-237 : October 2007 No author supplied for original article
LexisNexis Summary
The tax deductibility of interest payable on money borrowed to acquire interests in trusts is regulated by section 8-1 of the Income Tax Assessment Act 1936. Generally speaking, a deduction for a loss can be claimed only where the loss was incurred in gaining or producing assessable income. A loss cannot be deducted where it is of a capital nature. The deductibility of interest on borrowings applied to acquire units in an ordinary unit trust should be determined without regard for any possible capital gain on the disposal of the units.
