deduction on joint policies

[magich2o]

Got a quick tax deduction question:

If I own (in my name) the investment property but purchase the insurance policy under joint names (ie mine and my wife's), am I eligible to deduct the 100% of the policy premiums as a tax deduction? Or am I only eligible for 50% as the policy is under both names?

Why would I do that? Because she holds the bank shares and as such, the shareholder's discounts, etc

Thanks, Magic

 

[Lotana]

Magic,

IMHO you can claim the lot because you are the one to benefit from the policy. Make sure the receipt is made in your name. For instance, pay for it with your credit card.

An insurance policy has an owner and a benefitiary. Usualy it is the same person (or entity). But they may be differernt.

I use similar setup for car insurance. The car is registered in my company's name, but I am getting insurance policy in my name to get a multi-policy discount. In case of a claim the company gets paid.

Would be interesting to see what Dale's opinion is.

Cheers,

Lotana

 

[DaleGG]

Hi

I agree with Lotana in that you will receive the 100% tax deduction for all items if the IP is in your name. However, it is always good to be able to explain quickly and easily just why something might be in a different name.

Dale

 

[D.T.]

Obviously the IP is in one name so you can take full advantage of your tax situation. However, I have no idea why you'd want to title the insurance policy any different?