Q: Can my client deduct expenses from the interest income on his term deposit account based on these facts?
The family trust sold a building last year and has been actively searching for a new one. My client regularly attends property auctions and meetings with real estate agents in Queensland, New South Wales, and Victoria. He's keeping the sale proceeds in a term deposit until he buys a new building. He renews the term deposit every three months because he plans to use the money for a commercial loan.
A: The expenses from attending auctions and meetings don't seem directly related to earning income from the term deposit. So, they likely can't be claimed as deductions against the interest income.
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