Can you get finance in your own name and then purchase the property in the name of another legal entity? So that you can claim the tax deduction in your own name but protect your asset by having it not in your name. I did not think a bank would finance a purchase unless the loan and the property is in the name of the intended buyer.
maybe.
sort of.You could set up a hybrid trust or a unit trust and have the trustee own the property. The trustee could be a company for example. You could then borrow to buy units in the Hybrid trust or unit trust. If it was set up correctly, commercially viably, then you could personally claim the interest.
Problems:
– You have to be careful and have a cluey accountant.
– Tax. The trust has to be set up in a way that the unit hold must get the income and the capital gain. This makes it very unflexible compared to a discretionary trust.
– No asset protection. creditors could get their hands on your units.
– Banks don't like lending for these sorts of arrangements. They are afraid of third party lending – Someone other than the owner borrowing. It is still possible.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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