Am considering purchasing an investment property with a family member (share the loan).
The family member would reside in the property as a tenant and the percentage ownership of the property is currently flexible (I may take between 30% – 70% of a house loan).
If a dual title arrangement is entered into we would work with lawyers to ensure the arrangement is conditional (agreed to by myself and said family member).
My question relating to tax implications;
The tenant would pay rent to myself (the percentage share of the total loan that the tenant holds * median rent for the location). I will hold the loan as an investment.
Does the percentage ownership of the property or the fact that the tenant is a family member dismiss my potential negative gearing / depreciation claims?
Cheers ahead of time!
Good question yo :-)
I’m not an accountant so seek pro advice. My thought would be that if you’re not living in it – and it’s being rented out at market value, that you should be able to claim interest and other costs.
Best talk to an accountant though.
Nice avatar BTW :-)
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Yes. You can only claim your ownership share of the expenses. ie if you own 30% then you could claim 30% of the bills. Your family member would essentially be renting your 30% of the property from you and for you to claim the full 30% of the bills you will need to charge the family member market rent.
Consider estate planning too – what happens if one of you dies/?? or goes insane?
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
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