#### 26‑85 Borrowing costs on loans to pay life insurance premiums (1) You can only deduct under this Act interest on, or other expenses associated with, money you borrow to pay a premium for a \*life insurance policy if: (a) the \*risk component of the premium received by the insurer is the entire amount of the premium; and (b) each amount the insurer is liable to pay under the policy would be included in your assessable income if it were paid. (2) The risk component of a premium for a \*life insurance policy means the amount of the premium worked out on the basis specified in the regulations.

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Section 26‑85 Borrowing costs on loans to pay li - Income Tax Assessment Act 1997 - 26‑85 Borrowing costs on loans to pay life insurance premiums — Zoe