All Topics / Legal & Accounting / Income/Expense Apportioning

Viewing 2 posts - 1 through 2 (of 2 total)
  • Profile photo of rudra_rrudra_r
    Participant
    @rudra_r
    Join Date: 2009
    Post Count: 61

    Hi all,

    My family and I are currently in the process of splitting our PPOR such that we will be renting off the top and staying below. The current title of the house has all 4 family members and I wanted to check if the income generated and also expenses from renting off the top will need to be split 4 ways then declared individually at tax time. The reason I ask is that my mum does not currently work and as such pays no tax, while my dad received a tax break as a result of this.

    We would ideally like the income/expenses split between my dad, sister and myself as we would have the most to gain as we believe depreciation would result in this having a “negative” cashflow and therefore could offset this against our current incomes.

    Alternatively if we find it is providing a “positive” cashflow after depreciation we would like this to be under my mums name as she will have the lowest tax rate.

    Profile photo of Dan42Dan42
    Member
    @dan42
    Join Date: 2008
    Post Count: 619

    Simple answer, no. If you each own 25%, then the income and expenses are split 25%.

Viewing 2 posts - 1 through 2 (of 2 total)

You must be logged in to reply to this topic. If you don't have an account, you can register here.