Is it possible to have both names on loan but just one person on title?

Just to piggy back off this thead because I believe OP question has already been answered.

Ifthe property ownership is in single name but mortgage is in joint names, is there a senario were th ATO would look at the debt being tax deductible for both? Or in the case of the ATO do they soley look at title ownership?

Example

- property purchase in male applicants name for $335,000
- current loan in just MA name $175,000
- property demolished and subdivided now two vacant lots $220,000 each in value
- if then construction loan was in name of male applicants spouse or joint with spouse, would the spouse be entitled to tax benefit because purpose was construction of the new properties... Or is it based on the title ownership?
 
Good advice regarding the "and/or nominee" clause. Unfortunately I checked the contract of sale last night and in the Purchasor field, it doesn't have this clause, just both of our names, in line with the direction from our mortgage broker. I have asked our conveyancer to see if this can be changed, but I get the impression that it may be too late.
 
Name on title, not loan, determines deductions

This was my thought as well, contacted an accountant who I could tell from the sound of his voice had NFI... which he ended up suggesting to me but not giving me a clear answer that it would be deductible... I always thought in eyes of ATO it was name on title not loan.
 
jamie, go ride a roundabout, Rolf, go get dressed in some brightly colored clothes and walk along a canal.
 
Just to close this thread off, thanks to the great advice from everyone who replied to my post, I was able to get our solicitor to fix up the contract of sale to be in my name only.

To anyone else that finds themselves in this scenario, here's how it was resolved. Our solicitor requested that the vendor and their solicitor agree to a modification to the contract of sale. Our solicitor said they were fine with the request and it wasn't an issue for them. I then had to complete the following forms, return them to my solicitor, and that was it:
  • Transfer of Land (Section 45 Transfer of Land Act 1958)
  • Sale of Real Estate Nomination Form
  • Duties Form 6A (Transactions treated as sub-sales of land statutory declaration) - witnessed by Justice of the Peace.

Thank you again everyone, I have learned a number of lessons from this and I know who to go to when we are ready to start looking into IP #2 :).
 
Back
Top