Hi there,
I used to frequent this forum many years ago. I've got a question I'm looking for help with, so I thought it worth coming back as I've received some great help in the past.
I recently refinanced two investment properties while going through the process of buying (and financing) a new PPOR. The title for each of the investment properties properties is in my name (only). Title for the new PPOR is jointly held with my wife. Before the refinance, the loan against each investment property was also in my name (only). A silly mistake during the refinance process (as much my fault as anyone elses) meant that the investment properties are now financed under loans jointly held with my wife. The titles for these investment properties are still under my name (only).
Having the loans for the investment properties in joint names now is raising some big questions around the tax deductibility of the interest (hence this post). I've investigated having the loans switched back to my name only, however the investment properties are now financed through 3 year fixed loans which will incur reasonably significant break fees to do so.
My question - can I claim all of the interest on the joint loans for the investment properties as tax deductions? I've spoken to two accountants and have received conflicting advice. One says no - as the loan is joint, the interest expense needs to be split. The other says I can claim it all as the expense is linked to the income, which is all being paid to me (as the sole title holder of these properties). He says deductibility is determined based on the purpose of the loan.
I'd love to hear any thoughts on this one. Obviously not looking for financial advice, just keen to hear others' experiences and thoughts.
Many thanks!
sam
I used to frequent this forum many years ago. I've got a question I'm looking for help with, so I thought it worth coming back as I've received some great help in the past.
I recently refinanced two investment properties while going through the process of buying (and financing) a new PPOR. The title for each of the investment properties properties is in my name (only). Title for the new PPOR is jointly held with my wife. Before the refinance, the loan against each investment property was also in my name (only). A silly mistake during the refinance process (as much my fault as anyone elses) meant that the investment properties are now financed under loans jointly held with my wife. The titles for these investment properties are still under my name (only).
Having the loans for the investment properties in joint names now is raising some big questions around the tax deductibility of the interest (hence this post). I've investigated having the loans switched back to my name only, however the investment properties are now financed through 3 year fixed loans which will incur reasonably significant break fees to do so.
My question - can I claim all of the interest on the joint loans for the investment properties as tax deductions? I've spoken to two accountants and have received conflicting advice. One says no - as the loan is joint, the interest expense needs to be split. The other says I can claim it all as the expense is linked to the income, which is all being paid to me (as the sole title holder of these properties). He says deductibility is determined based on the purpose of the loan.
I'd love to hear any thoughts on this one. Obviously not looking for financial advice, just keen to hear others' experiences and thoughts.
Many thanks!
sam