Special Tax Topics 2024-25 - Deductibility of interest

With rising interest rates, it is crucial to reassess the circumstances under which interest is deductible. This session will delve into key topics, including whether the underlying transaction must always be deductible for the interest to be deductible, the complexities surrounding the deductibility of refinancing loans, and the treatment of mixed-purpose loans. Additionally, it will address the deductibility of interest under Division 7A, particularly in the context of refinancing unpaid present entitlements (UPEs), and examine scenarios involving on-lending, such as when a bank lends to an individual who subsequently on-lends the funds to an entity.

• Identify the specific conditions under which interest expenses are more likely to qualify for tax deductions
• Analyse the key factual considerations involved in the process of refinancing loans
• Discuss the primary issues related to the apportionment of interest in cases involving mixed-purpose loans.
• Evaluate the critical factors that influence the deductibility of interest payments on Division 7A loans.
  
  

This session forms part of the Special Tax Topics Series. These concise 1.5-hour sessions have been specifically designed for an online platform to ensure training is informative, immersive and even fun.

These sessions will:

• Ensure you get the critical knowledge you need while minimising your time out of the office.
• Assist you in providing proactive tax and superannuation advice and identifying tax planning opportunities early
• Help you avoid any possible traps and pitfalls
• Give you answers to the questions most relevant to you

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