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Loan interest aportionment

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g | 06 Nov 2014, 09:27 PM Agree 0
I am trying to set up a loan for my wife to buy an investment property. She doesn't quite pass the "servicability" test on her own, so the loan will need to be in both of our names.

100% of the funds from the loan will go towards an investment property in her name. Is it possible (legal) for her to tax deduct 100% of the interest even though the loan will be in both of our names?

Are there any examples published by the ATO that show this sort of thing (a 100%/0% loan split between the two people listed on the loan)? I haven't been able to find anything on their website that gives me confidence that this is OK.

  • | 06 Nov 2014, 10:34 PM Agree 0
    Will be treated as 50/50 meaning that she can only claim 50% of the interest as a tax deduction unless you contact the ATO for a private ruling.
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