First time user.
My income is three times that of my wife. We also have kids. We are looking at an investment property and were wondering does it matter who we put our investment property under and who collects the income?
We were also looking at possibly putting the investment property and our principle place of residence in a trust. What would be the benefits of a trust?
I appreciate your help with the above.
Hi M R,
This is a deeper question for your accountant or financial adviser. It should take into account your expected time to hold the property, whether it is new or established, the net cash flow and net tax effect.
I’m not an accountant but I would say, if you plan to hold until retirement go 99% in your name so that you can deduct taxable income against your salary and pay CGT after you have retired.
If you are trying to make a capital gain to be realised before you retire, I would go 50/50 to average the tax deductions while you hold and reduce the capital gains tax when you sell.
Get some advice specific to your current position and your goals and strategy before you buy.
If you would like some assistance at all please don’t hesitate to get in touch
Best of luck
Hi M R,
Depends on the property and level of gearing involved. If a new build with high finance, there is a strong chance your name is best on the title. If existing property and/or low finance, the property may be best with your wife.
You can purchase as tenants in common and break up the percentage according to best advantage.
The names/percentages on the title will generally dictate the income and expense percentages.
You need to liaise with your accountant and I would recommend also financial planner.