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Interest capitalisation - share portfolio

Discussion in 'Shares' started by Simon, 21st Feb, 2007.

  1. Simon

    Simon Well-Known Member

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    I have long been advised by peers that interest may be capitalised on borrowings to fund a share portfolio but not to fund an IP.

    Is this the case?

    Is it detailed at the ATO publications or does one need a private ruling?

    Thanks

    Simon
     
  2. Nigel Ward

    Nigel Ward Team InvestEd

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    That doesn't make any sense. Why should the nature of the asset impact the deductibility of interest when they are both income producing assets?

    There's been some recent case law on capitalised interest. I'll try to dig it up, time permitting.

    N.
     
  3. MrDarcy

    MrDarcy Well-Known Member

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