Hi, All
we are new to investment property field, before we signing the contract we would like to know few things below
1. to maximize tax benefit, shall we have house title only to one person which has higher income and paying more taxes?
2. could we still apply mortgage as a couple if the house is under one person’s name?
3. shall we still apply for mortgage as a couple even if the higher income person able to get the loan by himself?
4. If the mortgage is under couple name but house is under one, how does tax return impact for both？or only whose name is under the house is able to apply deduction?Many thanks for your response
John1. impossible to answer without information. Keep in mind negatives tend to become positives (otherwise no point in investing)
2. Only a legal owner can mortgage the property. I think you mean ‘loan’ here. Yes with some lenders – but should you?
3. If you are spouses the interest may be deductible to the legal owner even if both on the loan TR 32/93 paragraph 6. But you should enter into a formal loan agreement so the non owner spouse on lends the owner.
4. see 3 above.
Best to get some tax advice.
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
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