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30 July 2020
I borrowed some money & on-lent the money to a discretionary trust to which I'm a beneficiary to enable the trust to buy a business asset.
I charged the the trust the same interest as the interest I incurred on my bank loan.
Can I claim the interest deduction in my personal ITR (effectively nil effect as interest deduction = interest income from the trust)?
Do I need to charge a margin to the trust? It'd be appreciated if anyone could point me to an ATO guidance on this issue.
Most helpful response
31 July 2020
You can claim interest on the loan and you don't have to earn a margin. If it were the other way (i.e. trying to claim a net loss) you would have issues.
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