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Deduction of interest incurred on investment against other income, allowed?

Discussion in 'Help & Feedback' started by jyy, 26th May, 2011.

  1. jyy

    jyy New Member

    26th May, 2011
    Sydney, NSW
    Scenario: Income for my family trust listed as below:

    Dividend received (fully franked) = $7000
    Franking credit = $3000
    Total investment income = $10000
    Interest incurred to earn the above = $12000
    Net investment income = -$2000 (nothing to distribute to beneficiary)

    Other non-investment type income = $20000 (Personal Service Income not distributable to beneficiary)

    Can the $12000 interest incurred be deducted from the Other non-investment type income ($20000)? and to distribute the $7000 to trust beneficiary with franking credit $3000?

    Thank you for your expert advice.
    Last edited by a moderator: 26th May, 2011