All Topics / The Treasure Chest / LOC in joint names

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  • Profile photo of SpockySpocky
    Member
    @spocky
    Join Date: 2003
    Post Count: 10
    May 28, 2003 - 11:55 pm

    Very basic question from a newbie…
    My PPOR loan and LOC are both in joint names
    I was going to use LOC for deposit and costs on IP and have an IP loan in my name only to get max tax deductions (only I earn income)…
    can I claim all the interest on LOC as tax deduction or only half? Do I need to restructure LOC into my name alone?
    Thanks

    Profile photo of The DIY Dog WashThe DIY Dog Wash
    Member
    @the-diy-dog-wash
    Join Date: 2003
    Post Count: 696
    May 30, 2003 - 12:02 am

    Hi Folks

    I think this is a very good question, which didn’t get any replies.

    I too would like to know the answer to this, so can you put on your thinking caps and let us know what you think.

    Cheers
    Leigh K [:D]

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213
    May 30, 2003 - 12:10 am

    Spocky

    I don’t think this will pose any problems with you claiming all the interest. I do this now (but haven’t been audited-yet).

    You and your wife could just lend yourself the money anyway. Just charge yourself the same interest rate as the LOC.

    Terryw
    [email protected]

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of AdministratorAdministrator
    Keymaster
    @piadmin
    Join Date: 2013
    Post Count: 3,225
    May 30, 2003 - 12:15 am

    Claiming interest onloans is all about what the purpose of the loan is.

    If the purpose of the loan is to fund an investment property owned by you then you should get to claim the interest.

    My thoughts – from my experience

    (you really should ask an accountant this question though)

    Sometimes free information costs you more than you expect!

    Petters

    Profile photo of ADAD
    Participant
    @ad
    Join Date: 2002
    Post Count: 636
    May 30, 2003 - 1:17 am

    To me it is all about a paper trail. If you want all the deductability then your wife lends you her portion of the deposit at exactly the same rate as she pays (therefore neutral transaction). Therefore you are borrowing the whole amount. If you need to go this far (check with an acct) then it is a matter of a piece of paper signed and dated when it happened.

    Enjoy
    AD [:0)]
    (Andrew)

    “”Imagination is more important than knowledge. Knowledge is limited. Imagination encircles the world.”
    Albert Einstein

    Profile photo of The DIY Dog WashThe DIY Dog Wash
    Member
    @the-diy-dog-wash
    Join Date: 2003
    Post Count: 696
    May 30, 2003 - 6:02 am

    Thanks Boys

    I heartedly agree with you Peters. I will ask the (apparently) all knowing Dale.

    I will also post any info I do find out about this.

    Cheers
    Leigh K[:D]

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