Tenants in Common vs Joint Tenants

[Chandy]

Hi,

Just wondering if husband and I purchase a property under Joint Tenants with OH, at tax time do you only claim 50% of the costs on each of our tax returns.

I understand if we had Tenants in Common and I had a nominated 75% and OH 25% then this would also be reflected at tax time. This IP property will be neutrally geared if not slightly positive. I am the lesser earner as I work part time and will be for the next possibly 7 years. However we intend on keeping this long term.

Thanks

 

[Jake D]

Yes, Joint tenants is 50/50.

 

[Terry_w]

Hi,

Just wondering if husband and I purchase a property under Joint Tenants with OH, at tax time do you only claim 50% of the costs on each of our tax returns.

I understand if we had Tenants in Common and I had a nominated 75% and OH 25% then this would also be reflected at tax time. This IP property will be neutrally geared if not slightly positive. I am the lesser earner as I work part time and will be for the next possibly 7 years. However we intend on keeping this long term.

Thanks

Consider other aspects such as succession. With JT survivor inherits despite what is in the will (normally) with TIC each can leave their share to anyone in their will.

 

[Paul@PFI]

TIC v JT

Think medium term now....I find most properties are neg geared for 7 years and then they tend to be neutrally geared and then become positively geared as deductions wane and rents rise. How do you fix the problem in seven years when the higher income earned gets 75% of the rental profit ??

Think long term now...Its a residential property. You have $600K in super between your wife & yourself...You then ask the question everyone else asks "Can I setup a super fund to buy the property - It has stacks of cash". Answer is No. Its prohibited.

I havent found a client yet whose circumstances dont change. They always later say "I wish I had.....". Good planning and flexibility are gold.

 

[Chandy]

Consider other aspects such as succession. With JT survivor inherits despite what is in the will (normally) with TIC each can leave their share to anyone in their will.

Thanks Terry, think will go with TIC so we can in our wills leave a small portion of our IP to the kids (I keep telling hubby if I die and he remarries some bimbo, then she might screw over my kids and that's not on )

 

[Terry_w]

Thanks Terry, think will go with TIC so we can in our wills leave a small portion of our IP to the kids (I keep telling hubby if I die and he remarries some bimbo, then she might screw over my kids and that's not on )

Consider setting up the option of a discretionary trust inside the will - this will protect the assets in the event of your child being bankrupt at the time of your death, or maybe a family law dispute involving one of your children.