Hi, I'm in a situation where i own 50% of a house with an ex partner, due to the poor market conditions right now we dont want to sell as we may get less than what we owe on it, we have decided to rent it out until the market improves and it occurs to me that i would like to live there instead of renting elsewhere. My ex partners main issue is she wants to be entitled to all the tax benefits associated with recieving rental income and the question is can this be done with me renting the house we each half own?
You can both claim expenses in proportion of ownership
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
From what I've read so far on these forums, you should be able to continue to claim the usual deductions associated with owning an Investment Property, provided you charge yourself market rent for use of the property and declare this as income.
Your 50% will be private as you live in the house.
Your ex's 50% can be rented out. The tax treatment for them is pretty much the same as if the whole house was rented, they claim 50% of expenses etc.
If it is BTL property you can easily rent it out part of property, any your ex partner might be entitled to tax benefits.
If it is BTL property you can easily rent it out part of property, any your ex partner might be entitled to tax benefits.
Sorry Prime that is incorrect.
As the boys have already mentioned the claim will be proportional to the Title ownership.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Sorry Prime… Aussie laws are different to UK laws.
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
You must be logged in to reply to this topic. If you don't have an account, you can register here.
