Upon considering my first Investment purchase, i wanting to clarify the set up of property title and loan. I will need to include my wifes income on the loan application to show our ability to pay the loan, however to ensure maximum deductions and tax benefits, i have identified it is best for the property to be under my name only.
What i would like to know, is if it my wife’s name is on the loan, will this have an effect on my ability to claim 100% deductions against my income only?
No. It goes on who owns the property ie who is on the title (contract).
Make sure you consider the long term and not just the yearly claims. When/if you sell the CGT will be all on your income.Yes Title is the defining way to dictate deductions however it also dictates how the gains get apportioned.
We will assume that you want to do it that way for a reason.
Remember what looks like on paper a loss today can in 5 years be a substantial profit.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
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