Tuesday, 13 August 2013

Tax tips, part 9: interest deductions

You are able to claim a deduction for any expenses you incurred in earning the interest you declared at item 10 on your tax return.  Interest deductions get recorded at item D7 on your return (except for expenses incurred in earning foreign source interest, which go in item 20 or D15 on your return).

What you can claim

Interest deductions can include:
  • Bank or other financial institution account-keeping fees for accounts held for investment purposes
  • Management fees and fees for investment advice relating to changes in the mix of your investments
  • Travel expenses related to the investment
  • The cost of specialist investment journals and subscriptions
  • Borrowing costs related to the investment
  • The cost of internet access for investment purposes
  • The decline in value of your computer related to the investment