Wife works part time 10k is this year 18k tax threshold can i use this to my advatage

[atti]

sorry for long thread title, i have 2 ip, i live in 1 of them rent back 1 room but declared 50/50% on IO loan 300k so i only get 50% back on interest. but my wifes only works part time makes 10k a year and also helps me pay loan is there any way of getting that extra 8k threshold added to my deductibility ? i have income 56-60k p/a which includes half of that is rental income. oh my wife isnt on any of my loans either does that matter ?

 

[Aaron_C]

If your wife has no interest on the title how is she supposed to be relevant?

 

[pinkboy]

Yeah, make her work more!

pinkboy

 

[westminster]

sorry for long thread title, i have 2 ip, i live in 1 of them rent back 1 room but declared 50/50% on IO loan 300k so i only get 50% back on interest. but my wifes only works part time makes 10k a year and also helps me pay loan is there any way of getting that extra 8k threshold added to my deductibility ? i have income 56-60k p/a which includes half of that is rental income. oh my wife isnt on any of my loans either does that matter ?

Nope you can't use her excess for your taxable income.

 

[moyjos]

What does your wife do for work? Does she have an ABN? Can she bill you for work? (cleaning, admin work etc)

 

[chindonly]

I thought you could 'pay' her for duties related to your investments - doing the books, collecting rent..... etc.

You could pay her, and then she declares as income but if she is below the threshold - no tax?

Not advice! Best to talk to your accountant....

 

[coastymike]

Problem is she owns 50% interest in the property. How can she charge for something she already owns. See the mutuality principle. If the property was held 100% in hubbies name or in a trust and she did do bookkeeping, managing properties then yes she could charge market rates for her services. The current structure isnt a good one for doing this.

 

[atti]

well accountant said she has to be on the loan then he could technically, put rental income 10%me / 90% her way to utilise the extra threshold but he said "trust your wife!" lol

 

[pinkboy]

well accountant said she has to be on the loan then he could technically, put rental income 10%me / 90% her way to utilise the extra threshold but he said "trust your wife!" lol

Get a new accountant. Unless the ownership is 90/10 split, he cant just apportion how he feels.

pinkboy

 

[Aaron_C]

well accountant said she has to be on the loan then he could technically, put rental income 10%me / 90% her way to utilise the extra threshold but he said "trust your wife!" lol

Wow..I hope the accountant has good PI insurance!

 

[atti]

rather setup a whole new ip on a 50/50 split instead sounds more reasonable. yeah i was laughing cause it didnt think it sounded right declaring my titled house and puting her into my existing loan then having her getting 90% of rental income make sense but i dont know how ato going to see about that.