I thought maybe someone could answer this without me researching this one.
If I use the equity from my PPOR which is in my wife's name to purchase an IP in my name, can my wife claim the interest as a tax deduction if she in not named on the IP.
I would appreciate your response.
Scully
Why would she have any interest to claim against if she is not taking out the loan?
She will be borrowing the equity to use as a deposit for the IP.
If she lends the funds to you in a formal agreement she can claim the interest she is paying as a deduction however she offsets this by the interest she would receive from you.
In most cases this contra's each other out and has a neutral effect.
Why would she not have some interest in the IP ?
Richard Taylor | Australia's leading private lender
Because together our DSR will be over the recommended 35%. I don't have much debt on my own and my DSR is around 22%.
Scully
Scully
Still think there is a way around it but difficult to comment with specific information.
Richard Taylor | Australia's leading private lender
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