Hi all, Probably a bit of a dumb question, but I have a question on interest deductibility in regards to using borrowed funds to purchase shares. I have a loan with some funds available - if I redraw this and use it to buy shares in my wife's name, am I able to still able to deduct the interest from my tax? The loan is solely in my name. Thanks!
You buy in your wife's name? Is she trustee? Or Are you going to lend to your wife? If so you cannot claim the interest. If a written loan agreement on commercial terms is entered into she could potentially claim the interest assuming she is not a trustee and the shares are once producing. Seek proper advice
draft a loan to your wife, shouldn't be an issue. ------------------------------------------------- My posts are general in nature and do not constitute professional advice.
Assuming the shares acquired pay income. If they dont its not deductible interest but becomes a capital cost