Hi, can anyone out there help with my query?
My wife & me are looking at purchasing an investment property in WA with the land title as tenant in common.
We plan to have the bank loan as 100% in my name (negative gearing purpose) with my wife acting as guarantor, as required by the bank.
Can anyone advise:
1) For our tax return, how do we split the rental income & loan interest? My wife does not have any other income.
2) If we intend to move into this new IP after 4 years of renting it, we are considering 2 options.
Option 1 is to sell our current Principal Place of Residence (to be subject to CGT? Currently living 5 years) & move into the IP (which will become our PPOR).
Option 2 is convert our current PPOR to IP and moving into the new property which will now be our PPOR.
Which option would be more advantages from a taxation perspective?
What is the criteria to define when a property is PPOR?
Type of documentations that are required to support our claim?
Thank you in advance.
My wife & me are looking at purchasing an investment property in WA with the land title as tenant in common.
We plan to have the bank loan as 100% in my name (negative gearing purpose) with my wife acting as guarantor, as required by the bank.
Can anyone advise:
1) For our tax return, how do we split the rental income & loan interest? My wife does not have any other income.
2) If we intend to move into this new IP after 4 years of renting it, we are considering 2 options.
Option 1 is to sell our current Principal Place of Residence (to be subject to CGT? Currently living 5 years) & move into the IP (which will become our PPOR).
Option 2 is convert our current PPOR to IP and moving into the new property which will now be our PPOR.
Which option would be more advantages from a taxation perspective?
What is the criteria to define when a property is PPOR?
Type of documentations that are required to support our claim?
Thank you in advance.