Molinski,Mate while your conclusion is correct i think the...

Molinski,

Mate while your conclusion is correct i think the workings are not.

The investment has been paid for - a loan was taken out from Great Southern finance who physically paid cash to GSMAL to plant vines or whatever i nthe investment year.

This was the tax deductible expenditure incurred to establish the vines etc under the Product Ruling.

your point which is correct, is that loan was provided under the Product Ruling as part of all parties (ATO, GSMAL and Investor) carrying on the project as described in that Ruling.

If an investor then decided, as you say "to not pay the loan", I'd have thought this might jeopardise the orginal tax deduction.

I'd know as this is my situation.

I suspect I am going to have to pay the loan (which I am ok with for my early stuff but 2008 is another matter).

it is a small point of clarification but you actually "spent the money" in the investment year, but agreed to pay it back to Great Southern Finance (and if we all read the fine print it seems, whomever else they could flog the loan to)