W
walter1
Guest
If two people own a property, how should the income tax (rental income less costs) be filled in on income tax returns? Should it be split in half or should one person only put in the tax returns?
If two people own the property it has to be split between the two. If one partner is working and the other is not, it might be a good idea to transfer the property to the partner who is not working for tax purposes.
It's a very practical solution when a property is co-owned and one spouse is not working to transfer the investment property to the sole ownership of the non-working spouse in order to take full advantage of the non-working spouse's tax credits. This maximises the amount of income that would qualify for the 20% tax rate.Are you sure about this? Transferring the property is hardly a practical solution.
Is there not also a stamp duty issue with this aswell