All Topics / Creative Investing / Otherwise deductible rule

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  • Profile photo of denise1denise1
    Member
    @denise1
    Join Date: 2008
    Post Count: 5
    September 5, 2008 - 11:12 pm

    Hi,
    We have a property in NSW that is held 80% mine 20% husband.  We have been salary sacrificing the mortgage payments and utilising the otherwise deductible rule.  With the announcement from the government in the last budget that this rule will stop in March 09, we were wondering if anybody else has done this and what they will be doing next.  The question is has anyone heard what will be the cost of changing ownership back to 100% to the higher wage earner now that this rule is out.  We would appreciate any thoughts

    Profile photo of crjcrj
    Participant
    @crj
    Join Date: 2004
    Post Count: 618
    September 7, 2008 - 5:06 am

    Stamp duty, legal fees, capital gains tax.  Can you prepay any interest before March 09?

    Profile photo of Hybrid2007Hybrid2007
    Member
    @hybrid2007
    Join Date: 2007
    Post Count: 67
    September 7, 2008 - 5:10 am

    Denise, sorry i cant help but Im interested to know what the otherwise deductible rule is or what its for?

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213
    September 13, 2008 - 1:24 pm

    There was a rule which allowed the interest and expenses a jointly owned property to be claimed by the highest income earner by using salary sacrifice. The loophole has been closed now.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

Viewing 4 posts - 1 through 4 (of 4 total)

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