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