- Eric_SPQRMember@eric_spqrJoin Date: 2010Post Count: 3
HI EVERYONE – SOME ADVICE PLZ – Investment property to be purchased in husband's name. 10% deposit to be used from wife's offset account (Husband's name not on this loan). How can interest be claimed on tax?? Is there a way that husband can claim the full amount of interest paid? What have others done in this situation? Thanks..blockaParticipant@blockaJoin Date: 2010Post Count: 38
Not sure of your question but if this is how I understand it …
Ip in question put 10% in your name and you claim that part and 90% in husbands name and he claims that part…!!!WJ HookerParticipant@wj-hookerJoin Date: 2007Post Count: 272
Your 10% deposit is from an offset account – thus the extra interest, on that money is interest you can claim. You can do whatever you like with money in an offset account.
However the 10% you use for your husbands property cannot be claimed by him, And he cannot now get a loan for that 10% and claim it because it is considered as money paid off so to speak.
Hope that makes sense ?TerrywParticipant@terrywJoin Date: 2001Post Count: 16,213
I agree with WJ
The offset account is a savings account and withdrawing money from it is not new borrowings so there are no tax issues with taking deposits from it.
But removing money from an offset will result in higher interest being payable on the loan it is attached to. If your offset is attached to your home loan then you will pay more non-deductible interest.
A more tax effective way may be to pay down the PPOR loan and then reborrow it as a new separate loan. If the PPOR is in your name only you can on lend to the husband, charging the same interest as you are paying, and he will be able to claim the interest on his tax.Eric_SPQRMember@eric_spqrJoin Date: 2010Post Count: 3
Thanks blocka, WJ & TerryW – comments very much appreciated. Not wishing to refinance & cross-collatarise with a full line of credit against both properties – I think lending the deposit to husband and charging interest seems like an option – thus allowing full tax benefit. Eric