The Property Couch

542 | The Overlooked CGT Timebomb Hidden in Joint Tenancy - Chat with Julia Hartman

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Apr 17, 2025
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INSIGHT

Debt Recycling Misconception

  • Debt recycling is often misunderstood as turning non-deductible debt into deductible debt, which is incorrect.
  • If the dominant purpose is to increase tax deductions, the scheme is void under Part 4A of the tax law.
ADVICE

Avoid Self-Lending Tax Trap

  • Avoid lending yourself money as an investment deposit without proper sequencing.
  • To claim interest deductibility, ensure your loan covers the full purchase price and the deposit is returned at settlement.
INSIGHT

Joint Tenants Don't Inherit

  • Joint tenants do not technically inherit property; survivorship transfers ownership without triggering inheritance.
  • The cost base does not reset on death in joint tenancy, potentially leading to larger capital gains tax.
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