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2 weeks ago
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.
a week ago
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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