Margin Lending with regards to taxation
Hi ppl,
I was reading ASB's brochure on Margin Lending and one of the benefits of Margin Lending caught my interest -
Quote:
Taxation
Depending on your individual circumstances, there may be potential tax benefits to gearing your investment portfolio. If the funds borrowed by margin loan are used to purchase an income producing investment, the interest paid on your margin loan may be tax deductible.
I don't really understand what they are trying to say there. Could someone give me an example. So say if you are a wage earner could you claim the interest expense against your wages/salary?
Thanks,