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seeking advice re: ownership structure of new home

Discussion in 'Accounting & Tax' started by Mayfair, 27th Aug, 2015.

  1. Mayfair

    Mayfair New Member

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    7th Jul, 2015
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    Location:
    Sydney
    Hi all,

    I have an accounting question that I hope someone on here will be able to help me out with. I'll do my best to make sense of the question.

    My partner and I bought land in an estate late last year. The house is now completed, and settlement is next week. We (my partner and I) bought the house as a 50 50 split ownership. Our circumstances have changed of late. We are now expecting our first born. My partner will be going on maternity leave, and then hopefully part-time work from there on in. Therefore, roughly I'll be on about 90K a year, and my partner will be on about 40K a year.

    So my question is: Should we be changing the ownership structure of the house to maximize tax benefits on the property, as my partner won't be getting taxed much on her half salary?

    If anyone could provide me with any advice, it would be very much appreciated!

    Andrew
     
  2. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Sydney
    Sounds like a tax question rather than an accounting one. But tax is just one aspect as ownership is a legal issue.

    Have a look at my tax tips and legal tips on ownership structure and then seek legal advice on all the other aspects such as stamp duty, estate planning, asset protection, spousal loan strategies etc.
     
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  3. Kangaroo

    Kangaroo Well-Known Member

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    21st Aug, 2015
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    Hi, Andrew, Changing structure cost money and benefit maybe minimal. Reducing % for your partner is not helping her emontionally as well. I think it is far better just to keep investing than to fine tuning tax issue to the extreme.
     
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  4. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    Hi Andrew

    I'm not an accountant - but agree with the above. Changing ownership could be an expensive exercise (depending on the state you've purchased in).

    I assume the property is an IP then?

    Cheers

    Jamie
     
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  5. Mayfair

    Mayfair New Member

    Joined:
    7th Jul, 2015
    Posts:
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    Location:
    Sydney
    Thanks for the advice. I guess I'll leave it as is. It's easier that way also.

    Yes Jamie it is our first IP. Was organizing for a depreciation schedule and thought I'd get thoughts on the ownership structure. Will have to do some reading & find an accountant.