IP title - joint tenant

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From: Anonymous


Hi,

I and my wife are about to purchase an IP and wonder about the best option in regards to the title of the IP.

The current option for the title is either to use the joint tenancy or individual of the higher income earner.
My wife is currently working part time and I am the higher income earner in our family.

I know that the benefit of using one name is that you get the most tax benefit when your IP is negatively geared. However when the time to sell the IP you pay higher tax for the capital gain tax. The benefit of using 'joint tenant' is that the capital gain tax is distributed among two, so you pay less tax.

Any suggestion?
 
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From: Ctrader .


There is a Wrightbooks publication called 'Rental Property & Taxation' (2nd edition) by Tony Compton that discusses this scenario. Could be worth your while having a look at this then talking to your Accountant.
 
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