Hi everyone
My husband and I are are embarking on a joint venture with another couple. We have a contract on a house on a double block. We have set up a unit trust for the JV.
Our broker has applied for finance with all four of us on one mortgage. However, our accountant has advised that to claim the interest on the mortgage as a tax deduction this loan would have to be 'split' so that each couple has 50% of the loan while still remaining responsible for the entire loan if the other couple defaults. Therefore, each couple receives their own statement for their 'portion' of the loan, However, this also entails two establishment fees.
Does this sound right? Are there any other ideas about how to best set this up to maximise tax benefits?
Could we have one loan and if the ATO asks questions we can prove that each couple was paying 50% of the interest by showing bank statements?
With thanks
Megan
My husband and I are are embarking on a joint venture with another couple. We have a contract on a house on a double block. We have set up a unit trust for the JV.
Our broker has applied for finance with all four of us on one mortgage. However, our accountant has advised that to claim the interest on the mortgage as a tax deduction this loan would have to be 'split' so that each couple has 50% of the loan while still remaining responsible for the entire loan if the other couple defaults. Therefore, each couple receives their own statement for their 'portion' of the loan, However, this also entails two establishment fees.
Does this sound right? Are there any other ideas about how to best set this up to maximise tax benefits?
Could we have one loan and if the ATO asks questions we can prove that each couple was paying 50% of the interest by showing bank statements?
With thanks
Megan