newbie here... read some of the posts and not sure... Trying to determine best way to structure property investment loan. Can i do this? - Investment Loan under my name - Investment unit under wife's name Can i claim the loan interest under my name while all income,agent fees goes under my wife's tax return? Thanks
Claims and income need to be allocated in proportion to ownership. Who's name it goes under, or the mix, depends on whether the IP will be positively or negatively geared now and for how long into the future that might be (ie, even if it's negatively geared you may choose to put it more in the lower income earner's name if it likely to be positive in the near term), and particularly if you intend to sell it (to minimise eventual CGT). If you're both likely to be in the same tax bracket, then it doesn't matter so much. cheers, Dave
Just to expand a little on what D&K wrote - it is the purpose of the loan which determines deductibility, not the names on the loan. If the purpose of the loan was to purchase a property owned 50/50 by you and your wife, then the interest on the loan is deductible 50/50 between you. Similarly, if the loan was to purchase a property owned 100% by your wife, then only she gets the deduction ... regardless of whose names are on the loan.
