Hi
My wife and I are looking to purchase IP (NSW). Our PPOR is in my name only, fully paid off and bank used it as a security for the lP loan. I am the major earner while my wife pays no or very little tax. Once we purchase IP we are planning to initially rent it out and then move in within a year or so and then rent out our current PPOR as IP. Doing that can we:
-still claim negative gearing as our current PPOR will become IP and vice versa. Both properties will be taken as security by banks and neither rental would cover interest on IP property loan. Current PPOR is in my name only while IP title and Bank loan can be in either both names or just mine. We are looking to reduce my income tax.
-any other legal or tax implications that may come in play.
Thank you very much in advance!
My wife and I are looking to purchase IP (NSW). Our PPOR is in my name only, fully paid off and bank used it as a security for the lP loan. I am the major earner while my wife pays no or very little tax. Once we purchase IP we are planning to initially rent it out and then move in within a year or so and then rent out our current PPOR as IP. Doing that can we:
-still claim negative gearing as our current PPOR will become IP and vice versa. Both properties will be taken as security by banks and neither rental would cover interest on IP property loan. Current PPOR is in my name only while IP title and Bank loan can be in either both names or just mine. We are looking to reduce my income tax.
-any other legal or tax implications that may come in play.
Thank you very much in advance!