I have taken out a personal loan in my name only. I am using the money to acquire a sole trader business for my spouse. Can the business claim a deduction for the interest.
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Hi @Kellie123
The business won't be able to claim interest because the loan isn't in their name. The business would need to be the borrower and use the funds to produce assessable income or purchase income-producing assets.
If the business borrowed the funds from you for the above, and you charged interest then a deduction for the interest would be possible for them. However, you'd need to declare the interest as income and pay tax on it. I'd recommend seeking professional advice if you consider this approach.
If you go to our website you can read about the deductions a business can claim.
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Hi @Kellie123
The business won't be able to claim interest because the loan isn't in their name. The business would need to be the borrower and use the funds to produce assessable income or purchase income-producing assets.
If the business borrowed the funds from you for the above, and you charged interest then a deduction for the interest would be possible for them. However, you'd need to declare the interest as income and pay tax on it. I'd recommend seeking professional advice if you consider this approach.
If you go to our website you can read about the deductions a business can claim.
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