Interest capitalisation - share portfolio

Discussion in 'Share Investing Strategies, Theories & Education' started by Simon, 21st Feb, 2007.

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  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
     
    Simon, 21st Feb, 2007
    #1
  2. Nigel Ward

    Nigel Ward Well-Known Member

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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.
     
    Nigel Ward, 21st Feb, 2007
    #2
  3. TwoDogs

    TwoDogs Well-Known Member

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    TwoDogs, 21st Feb, 2007
    #3