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I needed to get a loan out to pay a tax debt, I believe the…

Customer Question
I needed to get...

I needed to get a loan out to pay a tax debt, I believe the interest on this loan is deductable

Accountant's Assistant: What state are you in? It matters because laws vary by location.

Victoria

Accountant's Assistant: Has anything been filed or reported?

Dont believe so

Accountant's Assistant: Anything else you want the lawyer to know before I connect you?

Yes I am currently working overseas and I am not liable to pay Australian tax. Does this effect my ability to claim the interest as a deduction?

Submitted: 1 month ago.Category: Tax
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Answered in 3 hours by:
1/5/2018
Tax Professional: Barbara, Enrolled Agent replied 1 month ago
Barbara
Barbara, Enrolled Agent
Category: Tax
Satisfied Customers: 4,752
Experience: 20+ years of experience in tax preparation; 30+ years of experience as a real estate/corporate paralegal.
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Welcome to Just Answer. My name is ***** ***** I will be happy to assist you.

What country does your question pertain to regarding deducting the interest on a loan to pay tax debt?

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Customer reply replied 1 month ago
Australia
Tax Professional: Barbara, Enrolled Agent replied 1 month ago

Thank you. Give me a few moments.

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Tax Professional: Barbara, Enrolled Agent replied 1 month ago

Unfortunately, a deduction is not allowable under either section 8-1 or section 25-5 of the ITAA 1997 for interest incurred by an individual taxpayer on a loan taken out in order to pay a tax debt.

I wish I had better news for you.

Thank you.

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Barbara
Barbara
Barbara, Enrolled Agent
Category: Tax
Satisfied Customers: 4,752
4,752 Satisfied Customers
Experience: 20+ years of experience in tax preparation; 30+ years of experience as a real estate/corporate paralegal.

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