INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)
[ Subdiv G of Div 3, comprising s 82KZC-82KZJ, inserted by No 46 of 1986.]
This section does not apply to the year of income commencing on 1 July 1987 or any later year of income.
View history note
Hide history noteA deduction is not allowable to the taxpayer under section 51 in a year of income in respect of rental property loan interest incurred after the commencement date unless the rental property income derived by the taxpayer during the year of income exceeds the eligible rental property deductions of the taxpayer in relation to the year of income.
82KZD(2) [Interest deduction limit]Where the rental property income derived by the taxpayer during a year of income exceeds the eligible rental property deductions of the taxpayer in relation to the year of income (which excess is in this subsection referred to as the interest deduction limit ):
(a) the amount, or the total of the amounts, of the deduction or deductions allowable to the taxpayer under section 51 in the year of income in respect of rental property loan interest incurred after the commencement date shall not exceed the interest deduction limit; and
(b) where the total of the amounts of 2 or more deductions that would be so allowable but for this subsection exceeds the interest deduction limit, those deductions shall be reduced respectively by amounts proportionate to those deductions and equal in total to the last-mentioned excess.
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