SchnitzelThe loan would be unlikely to be considered capital as...

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    Schnitzel

    The loan would be unlikely to be considered capital as in the situation outlined the person recieved income from the investment in the first year.

    If no income was recieved from the investment the loan interest may still be deductible however it may need to be proven that the intention of entering the initial investment was infact to recieve interest.

 
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