Gday folks On a recent thread I mentioned buying shares the day before they went ex-div and then selling them the next day, in order to get the dividend to pay down non-deductible debt (then when the non-deductible debt was paid off redraw it for investment purposes so you were back to where you were originally but with deductible instead of non-deductible debt). The shares would be purchased through a margin loan facility. It was suggested by someone that the interest on the margin loan would cease to be deductible after disposing of the asset. Personally I dont think this is the case, as deductibility is determined by the original loan purpose of the loan, which doesnt change just because you sold the asset for a capital loss (of course the proceeds of sale would be deposited back to the margin loan, only the dividend income would go to the non-deductible debt). The closest guidance I could find on the ATO website was: ATO ID 2003/841 - Deduction for interest expenses on borrowed funds used to purchase shares: no assessable income derived - company liquidated - taxpayer's subjective intention to derive assessable income Does anyone have an opinion on this, and perhaps any other guidance either way from the ATO through atoids, rulings or cases? Cheers!