Join Australia's most dynamic and respected property investment community

Borrowing for partner's purchase

Discussion in 'Accounting & Tax' started by Hodor, 3rd Jul, 2015.

  1. Hodor

    Hodor Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    745
    Location:
    Homeless
    Struggled for a title on this one, anyway.

    So far I have been purchasing in my own name and my partner (currently de facto) in her name. Our new PPoR will be in both names.

    In the future it is likely we would like to set up a LOC on one property, owned my myself, to purchase a property owned only in my partner's name (and/or vice versa).

    Will this scenario leave the interest on the LOC as tax deductible?
    Is there a better way to do this that will?
    What other considerations are there?

    Main reasons for holding in one name are to keep below land tax thresholds (not sure which states allocate by ownership and which allocate full amount to both) and to control income tax for each person with negative/positively geared properties.

    I'm sure there are other considerations I don't even know about.

    Thanks!
     
  2. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

    Joined:
    18th Jun, 2015
    Posts:
    9,033
    Location:
    Sydney
    Good to keep things separate for strategic reasons. You may simply borrow and lend to her and vice versa. make sure there is a written agreement and the loans are considered in your estate planning - wills, poa etc.
     
  3. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

    Joined:
    18th Jun, 2015
    Posts:
    9,033
    Location:
    Sydney
  4. Hodor

    Hodor Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    745
    Location:
    Homeless
    Thanks terry. Always helpful.