Hi – I'm a newbie but trying to learn.
I have a current investment unit from years ago where a friend did it all for me. They also setup a PAYG variation as it's negatively geared. I'm on a high income and my wife is on bugger all.
I remember on the PAYG variation we had to declare the ownership I had. Since I'm on the high income the accountant put 99% for me and 1% for my wife.
This makes sense.What I'm not sure of is if the unit would have to be in tenants in common for this to occur or not?
I trust my wife so would prefer joint tenants.I ask because I have another unit I'm buying that is cashflow neutral (from deductions). So I want to do the same thing as above and was asked "do you want joint tenancy or tenants in common" and could not decide. Can I go joint tenancy and still claim things under my name?
Thankyou
P.S I just found the paper work from the first unit and it's joint tenants.
Joint tenants = holding an interest in land jointly with others. On death the others get you share, it does not fall under your will (unless you are the last one alive!).
Tenants in Common = two or more people have distinct interests in land. These interests can be left in wills to others.
Tenants in Common can be in different shares.
Joint tenants can only be equal shares.If your first one is joint tenants then you may have some tax to pay back.
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
ps, you can only claim on the basis of title. If you were joint tenants with your wife you can only claim 50% of the costs and receive 50% of the income.
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
I would have thought that the accountant that submitted the PAYG variation would have asked about the title details before submitting the form? As Terryw mentioned, you might be in a position where you have to pay back tax.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Thankyou Terryw… now excuse me while I close the door and you hear alot of banging and swearing going on.
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