Digital gold mutuum

Question

Digital gold mutuum

 · Accepted Answer

AriATO · Answer

The principal amount is claimed as a deduction in full (para. 22). This can be claimed when its incurred which is at the time the principal is borrowed. The amount is the qty borrowed multiplied by the spot price at the time the loan is drawn down. A deduction can't be claimed for the repayments of the principle because the deduction for the principle has already been allowed in full. The disposal of the gold to pay the principal will need to be included in assessable income. The example in the ruling explains the above but if I have misread your question please let me know.

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