Names on title and on mortgage

Viewing 6 posts - 1 through 6 (of 6 total)

Ghorvath
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@ghorvath
Join Date: 2010
Post Count: 4
March 13, 2012 - 9:36 am
hopefully a simple yes no answer for a tax expert?
If my wife and i purchase an IP in my name only (to maximise negative gearing), but apply for a loan in both our names (to maximise serviceability) can i still claim 100% of the interest for negative gearing?
Jamie Moore
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@jamie-m
Join Date: 2010
Post Count: 5,069
March 13, 2012 - 9:50 am
I'm not an accountant but yes, usually not an issue.
Cheers
Jamie
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Terryw
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@terryw
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March 13, 2012 - 10:00 am
Ghorvath wrote:
If my wife and i
Who is purchasing you or both?
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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Richard Taylor
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@qlds007
Join Date: 2003
Post Count: 12,024
March 13, 2012 - 11:50 am
I will let Terry list the past case law but simple answer is Yes and No lol
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Yours in Finance
Richard Taylor | Australia's leading private lender
Mick C
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@shape
Join Date: 2010
Post Count: 1,099
March 13, 2012 - 1:53 pm
Hahah Richard good one!
Love ya Terry
Ghorvath – If the title is under ur name then yes you claim 100% of the loan; The ATO doesn’t ask whos paying for the mortgage as such- in fact your wife would most likely be listed as an guarantor of the loan with some of the major lenders like NAB if she not on the deed.
Regards
Michael
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Richard Taylor
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March 13, 2012 - 10:00 pm
Hi Michael
The No part was relating to some case law Terry posted up recently and my Accountant was discussing with me where one party had been used merely to support serviceability. The ATO had argued that without their income the loan would have not gone ahead and therefore want the income / expenses apportioned accordingly.
As i say i didnt read the full background to the case but in essence my understanding has always been as you have stated.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender