Allocation of tax deductions on joint-investment property

Discussion in 'Accounting & Tax' started by samaka, 2nd Feb, 2009.

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  1. samaka

    samaka Well-Known Member

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    1st Jul, 2015
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    Sydney
    Hi all,

    Let's say I purchase a property with one of my parents - and we own 50% each. Using easy figures, let's say we have a $100,000 loan and it costs 10% - thus for the financial year we pay $10,000 in interest.

    Now over that year we've deposited $20,000 combined into an offset account (from which the interest payments are debited).

    Can my parent claim all the interest payments (and I claim none)? Do the tax deductions have to be equal to the ownership of the property?

    This is the deal I'll probably doing with my parents. They are going to provide a big chunk of the deposit, and make repayments as well - however they will claim all the tax deductions (if possible).
     
    samaka, 2nd Feb, 2009
    #1
  2. Simon Hampel

    Simon Hampel Founder Staff Member

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    3rd Jun, 2015
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    Nope - net income gets allocated with the ownership of the property, in your case, you'll get 50% of the net income (which may be negative) allocated to each of you.
     
    Simon Hampel, 3rd Feb, 2009
    #2
  3. Rob G

    Rob G Well-Known Member

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    ATO TR 93/32

    Cheers,

    Rob
     
    Rob G, 4th Feb, 2009
    #3