All Topics / Help Needed! / Joint Investment Property Ownership but single income
Hi there,
I'm new to the property investing website and I have the following two questions. I do apologise if these questions have been asked before but I cannot find the answers to my two questions. Here they are:
1. My wife and I have an investment property via the default ownership of 50/50 each. For the last financial year my wife did not work as she was a full time mum. As I am in the process of doing my tax return, can I claim my wifes 50% share on my claim?
2. If the answer to the above is no, then would anyone know how much it would cost roughly to have the ownership percentage changed (ie. 90/10) or changed from a joint to a single applicant so that I can prevent the above problem from reoccurring?
Thanks.
Hi Richo
Firstly welcome to the forum and I hope you enjoy your time with us.
Couple of quick answers:
1. No regretfully you are unable to claim your wife's share.
2. Cost of transferring the ownership to yourself will depend on the value of the property now and the initial purchase price.
Reason being there might be additional Stamp Duty payable and possibly CGT.
If the property is in VIC you might be lucky in respect of the SD.
Once you have calculated the potential costs you need to way this up against the ongoing savings and this will be determined by your marginal Tax Rate.
Get yourself some good advice before rushing in.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Thankyou for the speedy response. The property is in Vic and I will certainly seek further advice.
Thanks & regards.
Let me know if you need a name down there and i can point you in the right direction.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Yes in Vic it can be done for stamp duty of about $50. You will also have the opportunity of redoing the loans – you will have to anyway. If you set this up right you will be able to claim more interest and save more tax. You need to seek legal advice and tax advice and arrange for the conveyancing to do done. Loan exit and entry fees and govt charges such as mortgage and discharge of mortgage.
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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