The Sombreros ran a small retail shop for a number of years from 2006. In 2012 they took out a loan from Eastpac for the business of $300,000 to help with ongoing costs and for some business renovations that they undertook. This business was later sold in 2016 and there were not sufficient proceeds to pay out in full the $300,000 loan and that $120,000 of this loan has remained. The Sombreros advise you that, for the year ended 30 June 2020, they paid $6,000 in interest on the loan to Eastpac Bank. Can the Sombreros claim any or all of this $6,000 interest payment in the 2020 tax year?

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The Answer of The Sombreros ran a small retail shop for a number of years from 2006. In 2012 they took out a loan from Eastpac for the business of $300,000 to help with ongoing costs and for some business renovations that they undertook. This business was later sold in 2016 and there were not sufficient proceeds to pay out in full the $300,000 loan and that $120,000 of this loan has remained. The Sombreros advise you that, for the year ended 30 June 2020, they paid $6,000 in interest on the loan to Eastpac Bank. Can the Sombreros claim any or all of this $6,000 interest payment in the 2020 tax year?

The Sombreros Ran a Small Retail Shop for a Number