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german(Newbie)Newbie
16 July 2023

Hi,

 

If I borrow money to invest in shares that choose to not pay a dividend in a certain year (but have a history of paying dividends) or I purchase it after they have paid a dividend

for that year, can I claim an interest deduction? And if so, in which category

(negatively gear or CGT cost base)?

 

If I borrow money and that money is placed in an account as collateral for derivative trading, can I claim an interest deduction?

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1,510 views
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Bruce4Tax(Taxicorn)Taxicorn
17 July 2023

If I borrow money to invest in shares that choose to not pay a dividend in a certain year (but have a history of paying dividends) or I purchase it after they have paid a dividend

for that year, can I claim an interest deduction?


Yes - interest is allowable if there is a reasonable expectation of future dividends.

Claim at item D8.


If I borrow money and that money is placed in an account as collateral for derivative trading, can I claim an interest deduction?


Yes - in business secion of tax return.


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Most helpful reply

Bruce4Tax(Taxicorn)Taxicorn
17 July 2023

If I borrow money to invest in shares that choose to not pay a dividend in a certain year (but have a history of paying dividends) or I purchase it after they have paid a dividend

for that year, can I claim an interest deduction?


Yes - interest is allowable if there is a reasonable expectation of future dividends.

Claim at item D8.


If I borrow money and that money is placed in an account as collateral for derivative trading, can I claim an interest deduction?


Yes - in business secion of tax return.


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Interest deduction - No-Dividend Shares and Investment Accounts. | ATO Community