Structuring loan for investment purposes

Afternoon, just wondering if anyone has any thoughts on structuring a loan for tax purposes on a investment property.
We're looking to purchase a investment property which the title will be in my wife's name but the loan for the investment property will be in joint names.
Will she be able to claim the full expenses in her tax return as only her name is on the title or will it need it also need to be included in my tax return as well.
Ive had 2 different answers from 2 accountants, in a perfect world for us she would claim all expenses and income.
Any thoughts much appreciated . Cheers Mat

 

Tax Tip 79: Interest Deductibility for 1 on title 2 on loans Tax Tip 79: Interest Deductibility for 1 on title 2 on loans

 

many thanks @Terry_w your tax tip makes sense, so I guess its able to be set up how we're trying too but not ideal. Thx again

 

Another Tip - The accountant who didnt say "deductions are based on legal title" is not a good tax adviser.

 

Thx @Paul@PFI The main accountant Ive used in the past has told me the loan must be in wifes name with me as guarantor but the bank is telling me its not possible. Accountant is pushing me to see their mortgage broker who can apparently set this up so Im just trying to do my own research.
Just seeing if we run with the banks setup if it will impact on us at taxtime. Cheers

 

kickbacks?

 

My thoughts exactly mate, that's why I'm fishing around for information on whether we can set it up as described without being disadvantaged at tax time. Thx

 

Which bank? Partner as servicing guarantor can be done

 

CUA

 

Have a chat with Westpac as an example - they'll consider

 

Thx

 

It doesnt matter how the loan is setup provided a owner is borrower. The deductions are solely attributable to the legal ownership. Lenders all have rules. Some lenders wont do a 1%/99% owership for example as the 1% doesnt meet their tests for ownership interests. Some wont do a guarantee. If there is no impact on your name being on the loan you will find a joint borrowing has less hurdles.

 

Accountant seems to lack tax knowledge and may be giving poor credit (unlicensed) advice as a consequence.

 

Thx again @Paul@PFI You've reinforced what Ive managed to dig up on the net this afternoon. Suspect there's something in it for the accountant if use their mortgage broker.

 

Morning,

In regards to yesterday's question about having joint names on a loan but the deed of title for investment property in my wifes name for tax purposes my accountant is still claiming that there may be dramas at tax time and my wife may only be able to claim have the expenses. Im finding this very confusing as Ive had it confirmed from a few different sources inc you guys that this is not the case. Has anyone out there heard of this happening at all, very confused.

They are pushing me to use their mortgage brokers which Im starting to think is the real reason behind this. Have to get on the lookout for a new accountant I think. Many thanks

 

I have probably cited authority for this in my post linked above. if there is there a tax ruling along these lines.

The alternative is to onlend - both borrow and onlend to the wife. I have done private rulings along these lines which were positive - but lending to a trust not spouse, same principles though

 

Cheers Terry