Hi
Is it only the person/s who have their names on the property title who can take advantage of negative gearing?
And, does transferring a title from one name to two names, in an investment property, attract stamp duty?
Yes it would attract both Stamp duty and possibly CGT but in saying this it may still be worth it.
We regularly assist clients in transferring their property into a Trust structure where they have a limited amount of tax deductions and are looking at ways of paying down their non deductible PPOR debt.
Richard Taylor | Australia's leading private lender
Maxxy, your name doesn't have to be on the title but it does have to be on the loan to get -ve gearing. The title can be held by another entity eg a trust.
If the property is bought through a Hybrid Trust then whoever is issued the Special Income Units is the person that benefits from the negative gearing. Generally the higher income earner as they get the biggest advantage tax wise.
Regards,
Alysha
bardon wrote:Maxxy, your name doesn't have to be on the title but it does have to be on the loan to get -ve gearing. The title can be held by another entity eg a trust.
Hi Maxxy
If a trust owns the property, then it is the trust that claims the interest. The only exception is if the trust is a unit trust or a hybrid trust and the unit holder borrows the money to buy the units.
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
bardon wrote:Maxxy, your name doesn't have to be on the title but it does have to be on the loan to get -ve gearing. The title can be held by another entity eg a trust.
Hello
Does that mean a jointly owned IP with an investment loan in both names could be changed to an investment loan in one name with the negative gearing but maintain the title in both names.Regards
Peet
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