Dear All,
Just another quick question please…
Theoretically, if you co-own an IP all expenses, income and tax deductions need to be apportioned accordingly.
However, what if the ownership is 5% and 95%. The 5% owner acts a guarantor only, so all expenses and income related to the IP are paid for / received by the 95%owner and can be traced back to the 95% owner only. There is no mixed financial arrangement among the owners, just the ownership as well.
I reckon the 95% owner should be able to get all the tax deductions as well? Is that correct?
Thanx and looking forward to your responses,
CattleyaCattleya
Here to learn the ropes of property investing & share knowledge, not trying to sell anything at all.
Where a property is held as Tennants in Common as above the apportionment of the expenses and income is as per the Transfer document.
In the example you have shown 95 / 5% is correct as is the way the deduction would be calculated.
Richard Taylor | Australia's leading private lender
Hi Richard,
Thanx for the response, however I still am confused.
So even if the 5% owner has not paid anything nor received anything and totally separated financial arrangement, he/she is still entitled to 5% of tax deductions?
Many thanx,
CattleyaCattleya
Here to learn the ropes of property investing & share knowledge, not trying to sell anything at all.
Correct
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