Hi,
My wife and I bought a property in NSW a 2+ years ago under a contract – Joint Tenants.
My question is, does the ATO recognise this as a 50/50 split for income/expenses? If yes, then how ho I change the ownership to favour one person for tax reasons (eg. 70/30 split as an example)?
Thanks
JasonHi there
the answer is yes – the ATO will consider the split as 50/50 for income/ expenses.To change ownership – you either have to go the whole way and change the title to tenants in common and specify the shares or you might see if you can benefit from an arrangement where you can salary sacrifice investment loan repayments under the otherwise deductible provisions of the tax legislation. It requires a tax ruling and your employer has to be on side but some employers are definately offering it to their employees.
Another option may be to sell the property to a trust and have splits according to the discretion of the trustee. The downside if you are in NSW would be you would probably attract land tax to the arrangement.
thanks
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