Can I claim interest on a home loan

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CaroATO · Answer

If the money is being borrowed by you to purchase your inventory (even though you both are liable) , then you may be able to claim the interest rather than you and your husband claiming the interest. Generally, the fact that the loan is in both names , or where the home is in both names (ie the security) does not necessarily mean that the interest deductions have to be split between the two parties named on the loan. Whilst Taxation Ruling TR 93/32 deals with rental properties and the division of rental property income and deductions between co-owners, the underlying principles can be applied to other income producing assets. It might be reasonable in your case to say that you used the borrowed monies to purchase the business assets that are owned by you solely. As sole owner of the the business inventor), any income earned from them will be assessable to you . You would also be entitled to claim a deduction for the interest charged on the loan used to purchase the inventory. **edited by moderator***

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