Home » E-News » News

Categories

Accountant Allied Health Annuity Asset Finance Asset Planning Asset Protection Asset Protection Strategies Assets Assets and Risks Ato Bas Binding Death Benefit Nominations Binding Financial Agreement Bonds Brexit Budget Budgeting Business Business Registrations Business Support Business Tax Deduction Business Value Capital Gains Tax Capital Protection Catherine Frost Cgt Checklists Commercial Property Community Corporate Trustee Cryptocurrency Death Benefit Nomination Debt Debtors Deceased Estate Depreciation Director Director Id Divorce Economic Update Economy Emily Kermac Employees Estate Planning Executor Fbt Federal Budget Finance Finances Financial Advice Financial Plan Financial Update Franking Credits Government Grants Gst Home Office Hybrid Unit Trust Individual Ownership Information Session Insolvency Insurance Interest Rates Investment Loan Investment Loans Investment Property Investments Janet Kohan Jobkeeper Jobmaker Joint Ownership Ken Burk Land Tax Lending Market Update Mortgage Broking Mygov Negative Gearing Overseas Gifts Parental Leave Paris Financial Pat Mannix Payg Payg Variation Pension Practice Practice Valuations Private Wealth Property Rebecca Mackie Record Keeping Research & Development Retirement Retirement Planning Retirement Savings Salary Sacrifice Scams Self Managed Superannuation Self Managed Superannuation Fund Self Managed Superannuation Fund Borrowing Shares Small Business Smsf Smsf Borrowing Smsf Self Managed Superannuation Fund Steve Wildes Strategic Business Structuring Structures Succession Plan Superannuation Superannuation Fund Tax Tax Benefits for Super Tax Concession Tax Deduction Tax Losses Tax Offset Tax Planning Tax Savings Temporary Full Expensing Tenants in Common Tfe Training Trust Trusts Will Working from Home

5 Investment Property Ownership Structures - Joint Ownership

5 Investment Property Ownership Structures - Joint Ownership

There are 5 major ownership structures in which you can hold investment properties, and each one has its pro’s and con’s. In my second article we will be looking at Joint Ownership.

Joint ownership is another common way to own property, in fact most couples own their home in this way. In this instance the property is owned in joint names and if one partner should pass away, then the surviving partner (joint tenant) automatically owns the whole of the property. The deceased’s interest in the property does not form part of their estate and is not available for distribution to the beneficiaries of their will.

I come across many couples who own investment properties in this structure, typically when they start renting their former principal place of residence. This means that each person will declare half of the income and claim half of the expense in their tax returns. The percentage of ownership can NOT be altered for taxation purposes.

This ownership structure is great for home ownership and couples wanting to keep things simple for property investment, or couples who earn similar wages. However, if a couple have a significant difference income, joint tenancy would not be recommended as it will not give them the best tax advantages.

Short and long term plans, lifestyle, tax advantages and capital protection all need to be taken into consideration when determining the best structure to own your investment property in. As always, remember to speak to us on 03 8393 1000 before you purchase to ensure your ownership structure is suited to your individual needs.


Tags: Capital Protection | Investment Property | Joint Ownership | Negative Gearing | Rebecca Mackie | Structures |