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
     
  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.
     
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  3. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

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    +1 for what DT said.
     
  4. Terry_w

    Terry_w Structuring Lawyer and Finance Broker - all states Business Member

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    S.T likes this.
  5. Terry_w

    Terry_w Structuring Lawyer and Finance Broker - all states 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.
     
  6. Paul@PFI

    [email protected] Tax Accounting + SMSF Business Member

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    Interesting question for someone to ask after acquisition. I would wonder what other mistakes or misunderstandings there are.
     
  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
  8. Terry_w

    Terry_w Structuring Lawyer and Finance Broker - all states Business Member

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    None owners cannot claim expenses, even if they are paying for them.
     
  9. lowelllin

    lowelllin New Member

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    Does that mean my wife claims 100% interest or 50% of it?
    Ta
     
  10. Terry_w

    Terry_w Structuring Lawyer and Finance Broker - all states Business Member

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    100%
     
  11. lowelllin

    lowelllin New Member

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  12. Terry_w

    Terry_w Structuring Lawyer and Finance Broker - all states Business Member

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  13. teetotal

    teetotal airkeeping.com.au Business Member

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    How does one come off the loan ?
     
  14. Terry_w

    Terry_w Structuring Lawyer and Finance Broker - all states Business Member

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    'refinance' the loan. You can stay at the same lender or move.
     
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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?
     
  16. Terry_w

    Terry_w Structuring Lawyer and Finance Broker - all states 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.