Tax Decuctibility for me if Title on my name but Loan with wife name

Discussion in 'Accounting & Tax' started by sandydubes, 17th Mar, 2012.

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  1. sandydubes

    sandydubes New Member

    Joined:
    1st Jul, 2015
    Posts:
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    Location:
    Melbourne
    Hi,

    This is a query regarding Tax Decductibility on the Interest cost of the Investment Property.

    Situation:
    1. I have set-up split loans on my current place of residence. One of the split is set-up with loan balance zero - purpose is to drawout funds from this to pay for the deposit (say 20%) towards the Investment property (IP) that I plan to acquire. Thus the prime residence is mortgaged for this.
    2. The other 80% loan is going to be set-up with another Lender with the IP as a mortagage.
    3. I am in the highest Tax margin and wife earns 60K pa. The IP title is going to be only on my name to get the full tax benefits. The 80% loan against the IP as mortgage is also going to be only on my name.
    4. The current residence loan split (from where the IP deplosut will come) is on both of our names.

    Question:
    1. Will I be able to claim tax deductions on the interest cost of the Deposit (20% funds - loan from split loan set-up under joint name, with my wife)?


    Regards,
    Sandydubes
     
    sandydubes, 17th Mar, 2012
    #1