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Investment property

Noel Whittaker | April 23 2008 | The Sydney Morning Herald & The Age (subscribe)

Q.

I bought an investment property by borrowing a 20% deposit from my brother overseas at a lower interest rate, and 80% bank loans. The property is in my name. Can I include the interest I am paying to my brother when calculating negative gearing?



A.

As the property is for investment you can claim all outgoings including interest and it doesn't matter who the interest is paid to.

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