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Re: Investment property loan

This post is archived and may not be up-to-date.

Newbie

Views 1541

Replies 2

Hey. I’m in the middle of refinancing and I’m planning on removing the mortgage off my occupied place and put it onto my investment property. For mortgage servicing reasons I need my spouse on the mortgage.

The investment property is in my name only. Will we need to split anything in our tax returns or do I claim all income and all expenses?
1 ACCEPTED SOLUTION

Accepted Solutions

Most helpful response

Newbie

Replies 1

I think I found the answer.

Question:

Is the taxpayer is entitled to claim the full amount of the interest paid on a mortgage for a rental property under section 8-1 of the Income Tax Assessment Act 1997 (ITAA 1997) when listed on the title deed as the sole owner, but the mortgage is held in joint names with the taxpayer's spouse?

Decision

Yes. The title deed determines the percentage of the claim for loan interest expenses in most cases. As the taxpayer is entered on to the title deed as the sole owner, they are entitled to claim the full amount the loan interest expense under section 8-1 of the ITAA 1997.
2 REPLIES 2

Most helpful response

Newbie

Replies 1

I think I found the answer.

Question:

Is the taxpayer is entitled to claim the full amount of the interest paid on a mortgage for a rental property under section 8-1 of the Income Tax Assessment Act 1997 (ITAA 1997) when listed on the title deed as the sole owner, but the mortgage is held in joint names with the taxpayer's spouse?

Decision

Yes. The title deed determines the percentage of the claim for loan interest expenses in most cases. As the taxpayer is entered on to the title deed as the sole owner, they are entitled to claim the full amount the loan interest expense under section 8-1 of the ITAA 1997.

Former Community Support

Replies 0

Hi @Ari

 

Welcome to our Community!

 

It's great to see you've found the information you were after. Be sure to ask any further questions you have on our Community or phone us on 13 28 61 between 8am - 6pm, Monday to Friday to speak with an operator. 

 

Thanks, JodieH.