Capitalised interest?

Discussion in 'Accounting & Tax' started by MRO, 3rd Jul, 2015.

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  1. MRO

    MRO Well-Known Member

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    Are there are circumstances where capitalised interest is acceptable to the ATO?
     
    MRO, 3rd Jul, 2015
    #1
  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Yes.

    It is allowable as long as the purpose is not 'to pay off the home loan sooner'. So someone not working may be able to claim the interest on interest and justify this by arguing cash flow. However someone not working may not have other income to reduce as the tax advantage may not be much.
     
    Terry_w, 3rd Jul, 2015
    #2