Need some clarification onmy situation?

Discussion in 'Accounting & Tax' started by Hunting_dollars, 26th Mar, 2008.

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  1. Hunting_dollars

    Hunting_dollars Member

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    SA
    Hi guys I was wondering if anybody could help me with my situation to see if there is anything I could improve/change. I have an IP with an IO loan in my name only. The interest for this loan is debited from an account which is in my name and my wife's name. Because the interest is deducted from an account which has dual ownership, does it mean that I can only claim half the interest expense as a deduction?

    Also, similarily I have a LOC for investing purposes (mainly shares) which is in my name and my wife's. The interest for this LOC is debited from another dual owned account. So who gets to claim the interest as a deduction?
     
    Hunting_dollars, 26th Mar, 2008
    #1
  2. Handyandy

    Handyandy Well-Known Member

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    The deductability relates to the entities in whose name the investment is held - the debt is deductable because of the investment.

    If the investments are in your name then both the income and deductions are yours.

    Cheers
     
    Handyandy, 26th Mar, 2008
    #2
  3. Hunting_dollars

    Hunting_dollars Member

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    1st Jul, 2015
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    Location:
    SA
    Thanks handyandy, so the IP is in my name therefore I can claim the interest in full. and the shares are in my wife's name therefore the interest paid is deductable in full by her. even though the both sets of interest are paid from a joint account where my wife and I both deposit our salaries?
     
    Hunting_dollars, 26th Mar, 2008
    #3
  4. Simon Hampel

    Simon Hampel Founder Staff Member

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    Doesn't matter where you get the money from - only matters what the money is for.
     
    Simon Hampel, 26th Mar, 2008
    #4
  5. MattR

    MattR Well-Known Member

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    Hi...let me first introduce myself first, I am from Nigeria.......

    :D
     
    MattR, 26th Mar, 2008
    #5
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