Hello all
I am wondering if anyone can help with some general advice regarding our situation. My question is in two parts so feel free to address either or both. All input appreciated.
Situation: My wife recently purchased a place (July) that we have been undertaking renovations on - absolutely necessary as the place was in a state of significant disrepair and the council had issued substantial requisitions. Total purchase price and costs were borrowed.
In addition, I have purchased a block of land and am in the process of moving a house on it - the loan for this exercise was made up of the purchase of the land, purchase costs and working capital to complete. Actual figures are land cost $110k - borrowings $210k. The working capital and land borrowings are secured against complete portfolio (properties in both mine and my wife's name - complete cross-collateralisation). The loan is in joint names.
The renovations on the place in my wife's name have, to date, been funded out of our own private capital - but there is a significant amount more work to be done to complete.
Now that you're all asleep, here's the questions:
1. If we use part of the funds loaned for the removal house for work on my wife's property, is it deductable (note that it is an investment property). I assume so given the purpose but my issue is more to do with the names on titles and loans etc.
2. Since we have expended our own private capital on my wife's place for renovations, if we obtained a loan to do renovations, and used part of it to repay our private working capital, would that part be deductable?
Regards
Laurie Shaw
I am wondering if anyone can help with some general advice regarding our situation. My question is in two parts so feel free to address either or both. All input appreciated.
Situation: My wife recently purchased a place (July) that we have been undertaking renovations on - absolutely necessary as the place was in a state of significant disrepair and the council had issued substantial requisitions. Total purchase price and costs were borrowed.
In addition, I have purchased a block of land and am in the process of moving a house on it - the loan for this exercise was made up of the purchase of the land, purchase costs and working capital to complete. Actual figures are land cost $110k - borrowings $210k. The working capital and land borrowings are secured against complete portfolio (properties in both mine and my wife's name - complete cross-collateralisation). The loan is in joint names.
The renovations on the place in my wife's name have, to date, been funded out of our own private capital - but there is a significant amount more work to be done to complete.
Now that you're all asleep, here's the questions:
1. If we use part of the funds loaned for the removal house for work on my wife's property, is it deductable (note that it is an investment property). I assume so given the purpose but my issue is more to do with the names on titles and loans etc.
2. Since we have expended our own private capital on my wife's place for renovations, if we obtained a loan to do renovations, and used part of it to repay our private working capital, would that part be deductable?
Regards
Laurie Shaw