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Is the interest on the Buyer agent fee tax deductible?

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

  1. JuliaCFA

    JuliaCFA Member

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    22nd Oct, 2015
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    Location:
    Melbourne
    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,
     
  2. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Generally yes under s8-1
     
  3. DaveM

    DaveM Adelaide Buyers Agent & KFC Strategist Business Member

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    If its from a sole purpose source (eg LOC, loan split for investment) then generally yes
     
  4. Paul@PFI

    Paul@PFI Tax Accounting + SMSF Business 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.
     
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