Tax issue: Can Renovation Loan be in One Name when Property in Two?

[propertyVIC]

Here's the deal. We want to renovate/extend a house owned by hubby and myself.

Hubby is on high tax rate. I'm not.

Can we get the loan for the renovation only in his name even though house itself is in both names?

Would this fly with the bank? Would the full renovation interest be deductible from his income even though he is only credited with half of the rent?

 

[Rolf Latham]

Might fly with the bank with a supporting guarantee............but probably crash and burn with the tax office

ta
rolf

 

[Mry]

50/50 ownership = 50/50 for all deductions. It doesn't matter in whose name the loans or the invoices are in.