The house title is under wife's name, but we've got a joint mortgage, how to claim tax deduction?

Discussion in 'Accounting & Tax' started by lowelllin, 18th Jan, 2016.

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  1. lowelllin

    lowelllin New Member

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    Hi guys,

    My wife and I have got an investment property, as title says, does my wife claim 100% tax or it's 50 50 between us?

    Thank you.
    L
     
    lowelllin, 18th Jan, 2016
    #1
  2. D.T.

    D.T. Specialist Property Manager Business Member

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    Mortgage is irrelevant. Person on property title declares the rental income and claims the loan interest, insurance, PM, council, water, strata, depreciation and maintenance.
     
    D.T., 18th Jan, 2016
    #2
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  3. Jess Peletier

    Jess Peletier Mortgage Broker & Finance Strategy, Aus Wide! Business Member

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    +1 for what DT said.
     
    Jess Peletier, 18th Jan, 2016
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  4. Terry_w

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

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    Terry_w, 18th Jan, 2016
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  5. Terry_w

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

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    Sounds like your wife has an investment property.

    She claims all the interest and other expenses. You are at risk being on the loan and should come off the loan if possible as best to have only one of you at risk. Not being on the loan will also mean you have greater serviceability for the next ones.
     
    Terry_w, 18th Jan, 2016
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  6. Paul@PAS

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

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    Interesting question for someone to ask after acquisition. I would wonder what other mistakes or misunderstandings there are.
     
    Paul@PAS, 18th Jan, 2016
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  7. lowelllin

    lowelllin New Member

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    Thank you for answering. It was the serviceability reason that we acquired the loan jointly. When you guys mention loan interest, does it mean she can claim 100% of the interest even the loan is under both our names, in other words, she is only paying 50% of the loan?
     
    Last edited: 18th Jan, 2016
    lowelllin, 18th Jan, 2016
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  8. Terry_w

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

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    None owners cannot claim expenses, even if they are paying for them.
     
    Terry_w, 18th Jan, 2016
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  9. lowelllin

    lowelllin New Member

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    Does that mean my wife claims 100% interest or 50% of it?
    Ta
     
    lowelllin, 18th Jan, 2016
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  10. Terry_w

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

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    100%
     
    Terry_w, 18th Jan, 2016
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  11. lowelllin

    lowelllin New Member

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    lowelllin, 18th Jan, 2016
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  12. Terry_w

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

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    Terry_w, 18th Jan, 2016
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  13. teetotal

    teetotal Well-Known Member

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    How does one come off the loan ?
     
    teetotal, 18th Jan, 2016
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  14. Terry_w

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

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    'refinance' the loan. You can stay at the same lender or move.
     
    Terry_w, 18th Jan, 2016
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  15. Beelzebub

    Beelzebub Well-Known Member

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    How does one come off the title? ...Without having to pay the government lots of money?
     
    Beelzebub, 18th Jan, 2016
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  16. Terry_w

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

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    Coming off title generally costs stamp duty, but this is payable by the transferee or the person the title is being transferred to. In VIC this may even be nil where both transferor and transferee are spouses.
     
    Terry_w, 18th Jan, 2016
    #16