If you have established a private company to invest in real estate (and wholly own the private company) and you personally borrow money to make initial and ongoing equity contributions to the company, is the interest on the borrowed funds tax deductible by the shareholder? I assume this is no different to buying shares on ASX in which case the interest on any borrowed funds is ordinarily tax deductible (although what is happening here is akin to a rights issue where the company’s equity capital expands on the back of ‘new’ shares purchased by the shareholder). The contributions are so the company has sufficient initial funds to finance the 20% deposit + costs on real estate purchases. Remainder of the real estate purchase by the company is funded by the company via the normal way using a company loan. The company is profitable and will eventually pay dividends to the owners, but has not done so yet. Does this issue depend on whether the company pays dividends? Is a reasonable expectation of future dividends sufficient?