Hi. I know one can claim tax deductions on the interest for loans that are used to gain income. I am wondering if I can still claim this tax deduction on the interest a pay for a personal loan in which a portion of that loan was used to purchase tools and equipment required for my work. This work is also my biggest source of income for this financial year.
Hi @SimmoM8,
Yes, you can claim the portion of the interest on the loan that related to the purchase of the tools and equipment required for your work. For example, if 50% percent of the amount borrowed was used to purchase tools and equipment required for your work you would claim 50% of the interest on the loan.
Hi @SimmoM8,
Yes, you can claim the portion of the interest on the loan that related to the purchase of the tools and equipment required for your work. For example, if 50% percent of the amount borrowed was used to purchase tools and equipment required for your work you would claim 50% of the interest on the loan.
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