All Topics / Finance / Capitalising Interest ?

Viewing 6 posts - 21 through 26 (of 26 total)
  • Profile photo of Charlie MFSCharlie MFS
    Participant
    @charlie-mfs
    Join Date: 2007
    Post Count: 32

    Hi,

    I agree with you Alistair, only an accountant can give the advise on tax matters. Just my observations.

    Sharlene
    [email protected]

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    Here are two private binding rulings from the ATO on the capitalisation of interest:

    Private Ruling 69725

    http://www.ato.gov.au/rba/content.asp?doc=/rba/content/69725.htm

     

    Private Ruling 63384

    http://www.ato.gov.au/rba/content.asp?doc=/rba/content/63384.htm

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of WASPWASP
    Member
    @wasp
    Join Date: 2005
    Post Count: 51
    Pellowe wrote:
    My understanding is this has been thoroughly tested, and although I can't quote quote anything, the guideline is you can't claim interest on interest, only on the original cost.

    I believe there's no problem with it happening in a Margin Loan as well?

    If i was to use Capitalising Interest for Investing Purposes ONLY by a LOC I'd definetly speak to a professional

    Profile photo of Brisbane BrokerBrisbane Broker
    Participant
    @brisbane-broker
    Join Date: 2003
    Post Count: 25

    Wow wasn't that fun
    but where are the accountants with opions on this too.

    Profile photo of PellowePellowe
    Member
    @pellowe
    Join Date: 2007
    Post Count: 11

    Again I'm not an accountant, but the good ones seem to advise against claiming interest on capitalised interest.  I don't think capitalising it's bad – quite the contrary.  But to keep my nose clean and beyond reproach, I wouldn't claim it.  The ATO seeks and destroys schemes designed to avoid tax, so if that is the goal, forget about it; but as my wise peers have already suggested, if it's a necessary means to a different end, get individual advice from an accountant, and even seek a private ruling for yourself!

    Profile photo of holdandrefinanceholdandrefinance
    Member
    @holdandrefinance
    Join Date: 2004
    Post Count: 38

    look up private binding ruling 69725 on the ato website it might help you

    glenn

Viewing 6 posts - 21 through 26 (of 26 total)

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