If you’re one of the many Australians with a personal loan, you’re probably paying too much interest. In fact, you may be able to claim a refund on some of the interest you’ve paid. Here’s how to find out if you’re eligible and how to claim your refund.
Whether to claim interest on a personal loan.
Unfortunately, the quick answer is no. Personal loan interest is typically not tax deductible. If, however, you used a personal loan to fund college expenses or business expenses, you may be able to deduct the interest paid on your taxes.
Claiming interest on a personal loan on your taxes.
Is personal loan interest tax deductible? In most circumstances, personal loans’ interest cannot be deducted from taxes. Unless the loan is being used for eligible taxable investments, qualified business expenses, or qualified educational expenses, you cannot deduct interest costs from an unsecured personal loan.
Claiming deduction for interest paid on personal loan.
Section 24 permits the deduction of interest from the net taxable income from residential property for money obtained through a personal loan. If the funds are utilized to purchase, build, or renovate the same property, section 24 will apply. A week ago