Buying a property with the wife that is negatiely geared.
What would you do?
Joint tennats 50/ 50 or Tenants in Common 90% me, 10% wife.
The wife already has a negatively geared property in her name only.
I have 2 positively geared properties in my name only.
We both earn the same.
Towlie, it depends on what you want to achieve. If you are going to be buying lots of properties, I would seriously consider your structures – ie are trusts going to be good for you etc. etc.
If you have a discretionary or hybrid trust, you can both be beneficiaries, and decide who gets the income at tax time. You can also add any kids as and when they happen – makes it easier in the future!!
If you’re not ready to go the trust route, put it in your name – your positive properties should cover any loss (hopefully).
You could do Tenants in Common 50/50 if you wanted to as well.
Cheers
Melhi all
normally with a neg. Geared prop. it would be best to go for the best tax deductions if the plan is to hold long term? therefore you would put the property in the highest income earner.
as you both earn the same amount, as Melbear said, it sounds like it would be best in your name as the cash pos properties will raise your income above your wife’s. i agree with Melbear to consider trusts.
westan
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