Interest from savings

Viewing 5 posts - 1 through 5 (of 5 total)

ur2
Participant
@ur2
Join Date: 2013
Post Count: 3
March 23, 2013 - 12:23 am
Hi all,
We are selling our home and the balance of the proceeds after paying off the mortgage will be around $1 mill. It may take us some time to find another home and during the hunting process that amount will generate some good interest in savings. I don't want that interest to increase my tax bill so would it be a good idea to open a savings account in my wife's name and park the money there or will the ATO deem both of us responsible for tax as the property was jointly owned(she works part time so I am currently earning more)?
Cheers
Rob
Terryw
Participant
@terryw
Join Date: 2001
Post Count: 16,213
March 23, 2013 - 1:48 pm
You can gift it to your wife – your share.
But, you should seriously consider some asset protection strategies when this happens. There are a few strategies which could be implemented cheaply and with potential tax benefits too.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email Me
Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
ur2
Participant
@ur2
Join Date: 2013
Post Count: 3
March 24, 2013 - 2:22 am
Thanks Terry. I'm sending you an email in regards to you services. Rob
Steve McKnight
Keymaster
@stevemcknight
Join Date: 2001
Post Count: 1,763
March 24, 2013 - 3:00 am
Hi,
Interest is usually taxed in the hands of the person whose account it is in.
If you put it in your wife's name, she will need to include the interest in her tax return.
Terry makes a good point about thinking through the asset protection issues.
Cheers,
– Steve
Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.com
Success comes from doing things differently
ur2
Participant
@ur2
Join Date: 2013
Post Count: 3
March 24, 2013 - 6:02 am
Thanks Steve. Yes, I agree. I will most certainly be looking into Asset protection. Cheers. Rob