My wife and I recently converted our PPOR to a negative geared IP. We are joint tenants so have to split income/losses 50:50, or do we? I am in the highest tax bracket so want to aportion most expenses to me, and most income to my spouse. I have found information saying you can salary sacrifice but I have to be honest and say it is confusing me[blink]. Can anyone help, how can I do this?
PS. I have asked my accountant but am overseas currently and he hasn’t replied.
Hi Price,
Income and expenses are apportioned in direct relationship with the percentage owned, which in your case is 50/50.
Salary sacrificing is a process whereby you can make certain approved payments from your before tax salary this has the effect of reducing your taxable income. Depending upon your employer there may be different aspects of your expenses you can package off – some of which will/may be subject to FBT.
Derek
[email protected]Property Investment Support Available. Ongoing and never stopping. PM welcome.
I think Julia from http://www.bantacs.com.au has a system whereby you can apportion costs/expenses in a better way legally…
Check out her site.
Cheers
MelThanks for the help guys. The Bantac’s website is really helpful. Looks like you have to get a private ruling. This could be done but I don’t know about my employer getting involved in paying for IP expenses, but I could be wrong.
My accountant got back to me. He’s suggesting transferring ownership to me (no stamp duty is payable between spouse’s). But this would mean income is apportioned to me as well as expenses. Not as good as income to wife, expenses to me but better at least.
You must be logged in to reply to this topic. If you don't have an account, you can register here.
