Interest Tax Deductibility

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 · Accepted Answer

_Logical_smsf · Answer

My questions is am I allowed to do the following: * Can the trust claims the interest as a tax deduction for the P & I repayment every month? ANS : If you have formal loan agreement in place, then Yes, You can claim deduction of interest. * Can I also claim the interest as a tax deduction for the P & I repayment every month? ANS : You can claim the interest deduction on the interest paid on the mortgage loan (Equity loan), however you will need to disclose the interest income recevied from the Trust in your personal tax returns as an income too (The trust paying you interest then becomes your interest income as the trust will claim it as a deduction, that has to be accounted as an income somewhere, given you will claim the deduction of the interest you will need to account the interest income also) OR * Which entity (myself or the trust) is entitle to claim for the interest as a tax deduction? The above answer applies, this question becomes void with the above answer

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