Hi Everyone,
First time forum topic question, my wife and l have a investment property which is in my wife name only. My wife doesn't work anymore (due to having our first child). We both would like to know can we still claim tax benefits from my wage only???
If not what would be the best way to do this??
You thoughts and ideas would be great.
thanks DannyI don't think you can claim anything as it is not your property.
Maybe you could pay your wife to do some sort of work for yourself so as it would be income to her and a deduction to you.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Danny not a tax lawyer but…You could always add your name to the title ? some states allow husbands and wives to do this under system where the Stamp duty is minimal. And if you do it as something other than 50/50 then you could theoretically claim more costs to you – but this is likely to be seen as tax avoidance ( part IVA).
Best option – transfer the property entirely over to your name ( borrow the money to make it completely geared) ie 100% – then you can refinance against more current value, and use any equity to buy another one!!
just do it for the original purchase price she paid that kills a bit of CGT -unless she had prior occupancy which may qualify her for home owners exemption.
you can get away with this as far as S/D is concerned as you don’t have to make money out of loved ones so a transfer at original purchase price is not unreasonable.(unless she has claimed deductions along the way.. as once again the ATO might get grouchy if she then tried to claim a capital loss..
just my thoughts but get advice!
Matt
Matt. Good points, but…
Transfers must be done at market value – or stamp duty and CGT assessed at market value. I think there are exemptions from Stamp duty in most states, but usually only for transfers of the main residence between spouses. Vic is one State which allows it done for investment properties.
Purchasing it off the wife is an option even if CGT is payable as the CGT may be minimal if she has no other income. But thinking long term if the husband has all the income and CGT – it may not be so good if the husband sells it later and he is on the topt tax rate. Its like a tax time bomb. May also not be good for asset protection.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Also, If your employer agrees, you could salary sacrifice the expenses relating to the property, essentially giving you the deduction for the expenses while leaving the income in your wives name. The payment of the expenses would be an exempt fringe benefit using the otherwise deductible rule.
Wilmacacc wrote:Also, If your employer agrees, you could salary sacrifice the expenses relating to the property, essentially giving you the deduction for the expenses while leaving the income in your wives name. The payment of the expenses would be an exempt fringe benefit using the otherwise deductible rule.This was changed two Federal budgets ago.
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