Announcements
COVID-19 update: Check out our answers to common questions about JobKeeper payment and early release of super.

ATO Community

Re: Interest on loan

Highlighted

Initiate

Views 405

Replies 4

Hi Team,

 

Last year my husband purchased a business with money that we borrowed against our house - can we claim the interest payments in any way?

 

Thanks.

1 ACCEPTED SOLUTION

Accepted Solutions
Highlighted

Best answer

Taxicorn

Replies 1

@Kellie 

 

They are the same thing, one tax return covers Personal and Business.

 

The interest would fall under a business expense.

 

He can claim all of the interest.

 

For related taxpayers, such as husband and wife, the ATO ordinarily treats these situations as not involving such a difference. See paragraph 41 of TR 93-32. There could be circumstances where such a difference can occur for related taxpayers, but merely having a joint loan is not treated by the ATO as falling outside that general rule.  

 

 

4 REPLIES 4
Highlighted

Taxicorn

Replies 3

@Kellie 

 

You can claim the business use of the loan's interest.

So if 100% was for the business, then 100% can be claimed.

 

https://www.ato.gov.au/Business/Income-and-deductions-for-business/

 

 

Initiate

Replies 2

Ok great thanks for your reply - And would we claim that on our individual tax returns or on the business tax return?

Highlighted

Best answer

Taxicorn

Replies 1

@Kellie 

 

They are the same thing, one tax return covers Personal and Business.

 

The interest would fall under a business expense.

 

He can claim all of the interest.

 

For related taxpayers, such as husband and wife, the ATO ordinarily treats these situations as not involving such a difference. See paragraph 41 of TR 93-32. There could be circumstances where such a difference can occur for related taxpayers, but merely having a joint loan is not treated by the ATO as falling outside that general rule.  

 

 

Highlighted

Initiate

Replies 0

Ok thanks very much for the info. I will pass this on to my husband as well and let you know if we have any further questions.

Cheers!