Hi,
we are thinking of purchasing our first IP. In terms of ownership of our IP, we are thinking that it will only be owned by my hubby, as it is negative gearing and he is higher income than me. However, the loan will be in both me and my husband name, as we use our own house as security/ mortgage (our house is in both our names).
Question #1: As the property is owned by my hubby, I believe that he can claim deduction on all interest expense, even though the loan is in both our name. Correct? Is there any document that I need to keep?
Question #2: some friend advised us that it would be better that I hold a nominal % of ownership, e.g. 1%. The advantage is that if the IP become positive cash flow in the future, then we can vary the % ownership such that me (lower income) will have higher % of ownership, this can be done relatively easily without incurring stamp duty (as opposed to the IP owned 100% by my hubby and then transfer to me). is that true?
thanks
we are thinking of purchasing our first IP. In terms of ownership of our IP, we are thinking that it will only be owned by my hubby, as it is negative gearing and he is higher income than me. However, the loan will be in both me and my husband name, as we use our own house as security/ mortgage (our house is in both our names).
Question #1: As the property is owned by my hubby, I believe that he can claim deduction on all interest expense, even though the loan is in both our name. Correct? Is there any document that I need to keep?
Question #2: some friend advised us that it would be better that I hold a nominal % of ownership, e.g. 1%. The advantage is that if the IP become positive cash flow in the future, then we can vary the % ownership such that me (lower income) will have higher % of ownership, this can be done relatively easily without incurring stamp duty (as opposed to the IP owned 100% by my hubby and then transfer to me). is that true?
thanks