• 120 Online
  • 22066 Members
  • 24644 Posts

ATO Community

Re: Separation of Marriage and Investment Properties

Ask a question

I'm new

Views 34

Replies 2

Hello separated not yet divorced in early 2017 and in the middle of wrapping up the legal side. 

 

Since break up - I have been receiving rent and paying rates and mortgages (mostly)  Smiley Indifferent   Man Frustrated    on 3 invest properties - quite a juggle with loan/debt ratio etc... 

 

so even though we 50/50 what do I do here??   

 

am doing tax return now for 18 and 19  so must I still put 50 % ownership for income / expenses and interest etc....   

The man child wants nothing to do with it .......  thanks 

 

 

 

 

so receiving rent and paying mortgage / rates (when I can) 

1 ACCEPTED SOLUTION

Accepted Solutions
Highlighted

Best answer

TaxTime Support

Replies 0

Hi @AM2828

 

Welcome to our community.

 

@macfanboy is correct.

 

When you are a co-owner of a rental property, you must divide the income and expenses for the rental property in line with your legal interest in the property. You can own a property as:

  • joint tenants – you each hold an equal interest in the property
  • tenants in common – you may hold unequal interests in the property (for example, one may hold a 20% interest and the other an 80% interest).

 

Either way, as you and your husband have a 50% share in each of the properties, 50% of the rental income and expenses must be attributed to you and 50% of the rental income and expenses must be attributed to him.

 

Sometimes there can be agreements between co-owners, either oral or in writing, stating otherwise, however for tax purposes it must be declared and claimed according to your legal interest.

 

For more information about this, check out the obtaining and owning a rental property page from our website.

 

For a more comprehensive guide to rental properties, refer to the rental properties 2019 page.

 

Depending on what you and your husband intend to do, if the intention is to sell one or more of these properties, you may want to have a look at the capital gains tax page.

 

Hope this helps.

 

Thanks,

 

ChrisR

2 REPLIES 2

Devotee

Replies 0

You would declare 50% rental income and claim 50% deductions.

The other 50% income is his income and you would be 'holding' it for him.

Probably best to transfer it to him ASAP and keep records.

 

Does the "man-child" realise that

 

(a) His name is on the titles so the ATO will expect him to include Rental Income in his tax returns.

(b) If you sell the properties he is liable for 50% of the CGT

 

 

Highlighted

Best answer

TaxTime Support

Replies 0

Hi @AM2828

 

Welcome to our community.

 

@macfanboy is correct.

 

When you are a co-owner of a rental property, you must divide the income and expenses for the rental property in line with your legal interest in the property. You can own a property as:

  • joint tenants – you each hold an equal interest in the property
  • tenants in common – you may hold unequal interests in the property (for example, one may hold a 20% interest and the other an 80% interest).

 

Either way, as you and your husband have a 50% share in each of the properties, 50% of the rental income and expenses must be attributed to you and 50% of the rental income and expenses must be attributed to him.

 

Sometimes there can be agreements between co-owners, either oral or in writing, stating otherwise, however for tax purposes it must be declared and claimed according to your legal interest.

 

For more information about this, check out the obtaining and owning a rental property page from our website.

 

For a more comprehensive guide to rental properties, refer to the rental properties 2019 page.

 

Depending on what you and your husband intend to do, if the intention is to sell one or more of these properties, you may want to have a look at the capital gains tax page.

 

Hope this helps.

 

Thanks,

 

ChrisR

Top Solution Authors