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Apportioning rental income for tax purposes...

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Annvan | 16 Oct 2016, 01:05 PM Agree 0
We relocated interstate in 2014 and have rented out our home since then, which is positively geared. As my husband no longer works I would like to apportion the largest part of that income to him to take advantage of the tax benefits of doing this. However, can I change that apportionment, if the circumstances change, possibly on a yearly basis? Or, given that I used a 50/50 apportionment last year, are we now stuck with that?
  • Sally | 06 Jan 2017, 10:37 AM Agree 0
    According to ato co-owners of a property must attribute rent and expenses according to their legal interest in the property. Does the rental have both of your names on the legal paperwork and are you both 50% shareholders?
  • Ardeevee | 16 Jan 2017, 11:48 AM Agree 0
    As Sally said, unfortunately according to ATO, tax obligations has to be apportion in regards to your property's legal interest. If your property titled 50/50, then any income & deductions will have to be apportioned 50/50 as well.
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