tax deductions for joint ownership

Discussion in 'Accounting & Tax' started by Jamane, 23rd Jul, 2018.

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  1. Jamane

    Jamane New Member

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    Hi Guys

    If my wife and I have an investment house under both our names how does it work when claiming the tax deductions?

    I was hoping for my wife to gain the full amount of tax deductions or do we have to claim 50/50???

    Reason i want my wife to claim full amount is because im nearly tax free due to claiming on salary package, work expenses, donations made to our church.


    thanks
    Jamane..
     
  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    claim in proportion to legal ownership.
    Joint tenants considered 50/50.
     
  3. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    Donation deductions can be deferred to a future tax year if its done correctly

    Many tax agents dont even know this one.... Its a common thing to overlook for large donations.

    Election to spread gift deduction
     
  4. Jamane

    Jamane New Member

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    I heard that you can have the mortgage in both names but the title of property in one name allowing you to make deductions into the name of title holder. Does this sound right??

    Thanks
     
  5. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Yes
     
  6. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    Its the same rule. The LEGAL owners will share in income and expenses in the same % as the land title unless there is a property business or other formal and accepted basis for ownership and share of income / costs.

    eg : A JV agreement may be a Partnership and the partnership agreement MAY operate in a different way to that of land title. However prior to ever adopting this approach tax advice is essential. (Spouses cannot use this method for example.)