Forum Replies Created
Yes, I appreciate your comments and thinking about it more they make sense, hypothetically when our exchange rate drops to 60 cents in the US dollar it would be a better option.
Warek
Thanks Derek
Derek wrote:warek wrote:Current thinking is as follows, if we buy as joint tenants, better when one of us dies. Income from lease property – all expenses including construction cost write down and depreciation of plant etc woudl be a profit per year of 500-1500 dollars, shared between both at 50-50 split, we may make a profit of 250-750 a year, excluding loan interest.Still trying to get confirmation that if my wifes borrows the loan in her name only even though we are joint tenants then the interest costs per year will be about 28000, fully deductable against her income. So to my way of thinking she then has a tax loss of 27250-27750 a year and I will have a profit of 250-750 a year. Is this correct?
Not sure what will happen in 5-8 years when we use house as our PPOR with any capital gains tax implications but expect that there will not be a lot of gain.
Kevin
Hi Kevin,
All expenses and income is apportioned according to the names on the titles.
In effect if you buy t he property as joint tenants (which defaults to 50/50 ownership) then that is how all expenses and incomes will be split. You may wish to consider tenants in common which allows you and your wife to retain shared ownership but you can weight the proportions according to your needs. For example 75% wife and 25% you (or what ever your accountant suggests).
As for CGT your Tas property will start to incur a CGT liability from the day you take ownership. This will continue until you shift PPOR status from Vic to Tas. Speak to your accountant about how this works.
You may elect to retain your Vic home as PPOR even after moving to Tas. You can do this for up to 6 years and retain CGT free status on your Vic home. This time frame would suit your 'try Tas before making a final decision' idea and allows you to move back to Vic without affecting it CGT free status.
When you move in you will be able to
Thanks for the replies, and just an update on my thoughts and issues I am still not sure of
Current thinking is as follows, if we buy as joint tenants, better when one of us dies. Income from lease property – all expenses including construction cost write down and depreciation of plant etc woudl be a profit per year of 500-1500 dollars, shared between both at 50-50 split, we may make a profit of 250-750 a year, excluding loan interest.
Still trying to get confirmation that if my wifes borrows the loan in her name only even though we are joint tenants then the interest costs per year will be about 28000, fully deductable against her income. So to my way of thinking she then has a tax loss of 27250-27750 a year and I will have a profit of 250-750 a year. Is this correct?
Not sure what will happen in 5-8 years when we use house as our PPOR with any capital gains tax implications but expect that there will not be a lot of gain.
Kevin
