Investment Property - Ownership shares - Taxation

Hi Everyone

My partner & I just bought our first investment property. We are about to complete the paperwork for the State Revenue office. My salary is roughly 50% more than my partners' salary and she will be off work soon on Mat leave. For taxation purposes, I am not sure whether I should split the ownership at 50/50 or 70(me)/30 or 80(me)/20?

What sort of implications will I have if I went with one of the options?

Any thoughts or advise?

Thanks

 

For taxation purposes now, while it is likely negatively geared, with you earning and paying tax, you'd like the ownership 99-1 in you favour. However, if you keep the property until and beyond when it becomes positively geared (rents creep up over time), then you'd want the property in the name of the lowest paying taxpayer.

There are other considerations like Land Tax and asset protection too.

What I am getting at is that you should have sought specific legal & accounting advice before buying.

 

Not sure how OSR and the issue are connected ?

The ownership is based on the contracted acquisition (all completed) and changing it later would be dutiable. If you bought it 50/50 then your question is a bit late

 

You don’t have any options.
It will depend on the ownership on the property title.
Always best to seek advice before signing.
Marg

 

If you change the ownership now you will have another transfer of property for the new percentage. That will attract stamp duty.

 

There would be no duty in NSW on changing things, not sure on VIC. Best to seek legal advice.

 

Thanks everyone. I have not settled yet, I am having the conveyancer to have the contract and other paperwork to 80/20 in my favour.

 

Read my tips in the legal and tax sections on this.