What are the chances?

Discussion in 'Loans & Mortgage Brokers' started by Scott No Mates, 16th Aug, 2015.

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  1. Scott No Mates

    Scott No Mates Well-Known Member

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    A colleague's partner (not working per say but still enjoys income splitting arrangement & franked dividends) is looking to borrow in their name - 80% loan but could buy outright with cash at bank.

    Partner doesn't want to appear on title (highest tax bracket). What are the options available?
     
    Scott No Mates, 16th Aug, 2015
    #1
  2. Corey Batt

    Corey Batt Well-Known Member

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    Put the property solely in the partners name, but both names on the loan application.

    Provides the tax treatment that they seek + gets finance over the line.
     
    Corey Batt, 16th Aug, 2015
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  3. Scott No Mates

    Scott No Mates Well-Known Member

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    Will the loan be deductible if in both names as only the spouse would receive income but both would incur the interest expense? Would there need to be a loan agreement between spouses?
     
    Scott No Mates, 16th Aug, 2015
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  4. Corey Batt

    Corey Batt Well-Known Member

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    Tax deductibility is generally determined by the name on the title, not the loan contract - so shouldn't be an issue.

    [insert usual see a tax professional for specific advice here]
     
    Corey Batt, 16th Aug, 2015
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  5. Scott No Mates

    Scott No Mates Well-Known Member

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    Last edited: 16th Aug, 2015
    Scott No Mates, 16th Aug, 2015
    #5