Can interest be claimed on loan for units in unit trust if no distribution this year

Question

 · Accepted Answer

RichATO · Answer

You are correct in saying that that the interest is deductible if there is reason to believe the property unit trust will produce assessable income in the future. This is allowable under ITA 1997: Section 8.1 (http://classic.austlii.edu.au/au/legis/cth/consol_act/itaa1997240/s8.1.html) For the current year that there has been no assessable income for investors your client can record the interest expense at item D15 in the supplementary section. (https://www.ato.gov.au/Individuals/Tax-return/2021/Supplementary-tax-return/Deduction-questions-D11-D15/D15-Other-deductions---not-claimable-at-items-D1-to-D14-or-elsewhere-on-your-tax-return-2021/)

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