Out for its purchase will be proportional

The is for example whether the loan repayment concerns an asset acquired as part of the companys assets or even the entrepreneurs personal property but used for the purposes of the business activity. The future event presented in the application shows that in the apartment purchased by the Applicant for private property she intends to run a business involving broadly understood educational services. The Applicant purchased the apartment in question entirely with funds from a mortgage loan.

The applicant intends to use part of the residential premises for business purposes and enter them in Cape Verde Email List the register of fixed assets and make depreciation deductions. To sum up taking into account the presented future event and the cited provisions of tax law it should be stated that since the residential premises in question will be partially used by the Applicant in her business activity the interest on the loan taken  to the area used in the business activity. economic activity may constitute the cost of obtaining revenues of this activity.



However in order to determine a specific expense as a taxdeductible cost the Applicant is obliged to demonstrate the relationship between this expense and the income obtained or activities conducted to generate income. This is consistent with the principle that the burden of proof rests with the person who derives legal consequences from specific facts. the loan taken out is related to the income obtained by the taxpayer from his business activity . interest was paid . interest was paid in the course of running the business activity . interest does not increase the investment costs.