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Discussion in 'Property Finance' started by Scott No Mates, 16th Aug, 2015.

  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?
     
  2. Corey Batt

    Corey Batt Finance Strategist Business Plus 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.
     
  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?
     
  4. Corey Batt

    Corey Batt Finance Strategist Business Plus 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]
     
  5. Scott No Mates

    Scott No Mates Well-Known Member

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    Last edited: 16th Aug, 2015