On 1 August 2017 James borrowed $600,000 to purchase a building which he immediately rented out. His monthly payments commencing 1 October 2017 amounted to $12,000 per month consisting of $9,500 interest and $2,500 principal. Required: Advise James as to what deductions (if any) he might be able to claim for the tax year ended 30 June 2018.