Does anyone know that if I buy property as Tennants in Common instead of Joint Tennants, am I able to specify 99% ownership for my new wife and 1% for me, thus reducing the income “on paper” that I receive from that investment, therefore not increasing my “assessable income”?
From my understanding, you do reduce your taxable income, but not just on paper. When the property is sold, any profit will be divided according to the designated split and taxed according to that individuals total income, ie your wife will recieve 99% of the profit, which may be good if she is the lower income earner, but dont forget that she also has 99% of the tax deductions whilst the property is held, and if a low or no income, may not be benificial. Only you can know the answer to this one, based on your incomes. A good question for your accountant I guess.
I am not sure how that affects child endowment. Centrelink has a great habit of adding the negatives (ie losses) from property back to create positives, and actually increasing your income.
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