Is the interest on the Buyer agent fee tax deductible?

Discussion in 'Accounting & Tax' started by JuliaCFA, 1st Mar, 2016.

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  1. JuliaCFA

    JuliaCFA Member

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    Hi,

    I know the buyer agent fee is not tax deductible.

    But I was wondering if I borrow the money to pay these fee, can I claim the interests?

    Would appreciate if any accountants out there who can clarify whether the interest paid on borrowings apportioned to BA fees are tax deductible.

    Thanks,
     
    JuliaCFA, 1st Mar, 2016
    #1
  2. Terry_w

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

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    Generally yes under s8-1
     
    Terry_w, 1st Mar, 2016
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  3. DaveM

    DaveM Well-Known Member

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    If its from a sole purpose source (eg LOC, loan split for investment) then generally yes
     
    DaveM, 1st Mar, 2016
    #3
  4. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    If the loan was taken out for capital expenditure (buying costs) or for deductible expenditure relating to an income producing property then all of the loan interest is deductible and there is no need to apportion. It is always wise never to have a loan that requires apportionment. It can lead to blended loan issues and difficulty in calculating the deductible.
     
    Paul@PAS, 2nd Mar, 2016
    #4
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