Hi
Hope someone can help me please.
I currently have a number of IPs with large loans attached to them (and circa 5.39% variable interest). I also have about $150k in savings sitting in an offset account that is reducing the deductable interest payable.
I am on the top tax bracket.
I was thinking instead of reducing the deductable loans with the money sitting in offset - that I 'gift' the $150k to my wife, and she place the cash in a term deposit earning interest over 5%.
As my wife does not earn any income - she will earn the interest income with minimum tax paid ($6000 tax free threshold).
Whilst I will pay more interest on the IP - that will be deductable and reduce taxable income.
So is this a good idea? Is it kosher, legal, etc?
Thanks for reading and your thoughts
Hope someone can help me please.
I currently have a number of IPs with large loans attached to them (and circa 5.39% variable interest). I also have about $150k in savings sitting in an offset account that is reducing the deductable interest payable.
I am on the top tax bracket.
I was thinking instead of reducing the deductable loans with the money sitting in offset - that I 'gift' the $150k to my wife, and she place the cash in a term deposit earning interest over 5%.
As my wife does not earn any income - she will earn the interest income with minimum tax paid ($6000 tax free threshold).
Whilst I will pay more interest on the IP - that will be deductable and reduce taxable income.
So is this a good idea? Is it kosher, legal, etc?
Thanks for reading and your thoughts