Dear all
I have a question regarding owning a LOC under two names and investing it just under one name.
Consider the following scenario:
My wife and I have a LOC loan under both our names. If we use the money from that loan to buy IPs or shares (whatever income generating assets) just under one name (for example, an IP with the title only show my wife's name). Could she receive all the rent from the IP and deduct all the interest generated from the LOC that used to purchase the IP? or she can only claim half the interest deductible as the LOC is under two names?
I have a question regarding owning a LOC under two names and investing it just under one name.
Consider the following scenario:
My wife and I have a LOC loan under both our names. If we use the money from that loan to buy IPs or shares (whatever income generating assets) just under one name (for example, an IP with the title only show my wife's name). Could she receive all the rent from the IP and deduct all the interest generated from the LOC that used to purchase the IP? or she can only claim half the interest deductible as the LOC is under two names?