Property Investors Split Income Advice Chartered Accountants Sydney Specialists
May 18, 2019
Property acquisition and tax expert Matthew Mousa of TLK Partners explains two different categories of property ownership and splitting income by co-owners.
Kingsgrove, Australia - May 18, 2019 /NewsNetwork/ —
Property co-owners and the income split
When two or more investors own a rental property together, whether it is rented out all year round or only part-time, the division of rental income is defined by the legal interest that each owner has in the property. Property acquisition and tax expert Matthew Mousa of TLK Partners explains the two different categories this legal interest fall under.
Co-owners who are Joint Tenants divide the income and expenses related to that property on an equal 50/50 basis. The interesting point to note here is that division of income and expenses in terms of legal interest overrides any verbal or written agreement that the two owners may have. “It is irrelevant if one is earning more than the other and would like to incur fewer taxes by claiming a greater proportion of the rental loss,” Matthew explains. “The division must be in terms of legal interest.”
Co-owners who own the rental property as Tenants in Common may have an unequal legal interest in the property, for example, a 30%/70% split. “If this is the case, you would then divide the income and expenses related to the property in terms of your legal interest, in this case, 30% and 70%, again regardless of any other agreement you might have made with the other owner.”
Anyone unsure of whether they fall into the category of Joint Tenant or a Tenant in Common should reference the title deed to clear up the matter.
RELATED ARTICLE: Private Investors Property Income Has Tax Implications Says TLK Partners Expert Matthew Mousa
Matthew explains that the tax man considers someone to be an investor who is not necessarily engaged in a rental property business, as long as the person doesn’t spend an inordinate amount of time engaged in rental property activities, doesn’t co-own very many properties, and doesn’t derive their income exclusively from the rental property.
If someone is deemed to be in the rental property business, the agreement between the partners takes precedence over the legal interest in the properties. The income and expenses associated with the business must be divided in terms of the partnership agreement.
RELATED ARTICLE: Superannuation Tax Estate Planning Private Wealth Financial Planning Sydney TLK Partners
“Investor’s trust TLK Partners to advise them of the best legal structures to maximise their return on investment,” Matthew concludes.
TLK Partners Wealth Management Companies Kingsgrove, Beverly Hills | Tax Accountant & Agent | Property Adviser are financial management, retirement planning and wealth advisers serving enterprises and private individuals who hope to take care of their future through sound financial management. Visit their website or contact them at (02) 8090 4324 for an appointment to discuss your financial management and investment needs.
This material is of a general nature only, it does not take into consideration your financial circumstances, needs or objectives. Before making any decision based on this content, you should assess your own circumstances, seek professional advice or contact our office to be directed to the appropriate professional. Whilst all care has been taken in presenting the material neither TLK Partners or its associated entities guarantee that the material is free of error and, the information may have changed since being published.
Syndicated by Baxton Media, the Market Influencers.
Contact Info:
Name: Matthew Mousa
Email: Send Email
Organization: TLK Partners
Address: 1-5 Commercial Rd, Kingsgrove, NSW 2208, Australia
Phone: +61-1300-724-017
Website: https://tlkpartners.com.au/
Source: NewsNetwork
Release ID: 512421
More News
In 1825, Boston piano maker Alpheus Babcock replaced part of the wooden frame with one piece of iron; the change let pianos become louder and more powerful
Alpheus Babcock's revolutionary cast iron piano frame marked a pivotal shift in piano craftsmanship and tuning practices. Though initially met with skepticism, this innovation found its way into the hearts of piano makers. Jonas Chickering subsequently refined the concept, producing sturdier pianos with richer sound. Today, the cast iron frame is a staple in piano manufacturing, enriching our musical experiences across various genres.
Floods and landslides claim 27 lives across Nepal in four days
Key Takeaways: 27 people died and four remain missing in 542 disaster incidents recorded between Sept. 24 and 27 Landslides accounted for 304 incidents and 20 deaths, while floo...
Some US roadside signs are designed to break or bend when a car hits them; the unusual design keeps the signpost from becoming an even more dangerous obstacle
In America, road signs play a vital role in ensuring driver safety, incorporating advanced breakaway supports designed to minimize injuries during accidents. Since the 1960s, the philosophy of creating forgiving roadways has gained traction, recognizing the inevitability of human error. With statistics showing that many traffic fatalities result from roadway departures, enhancing roadside structures becomes imperative for decreasing both accidents and loss of life on U.S. roads.
Iran's Revolutionary Guards call Trump a 'big liar'
Iran's Revolutionary Guards' spokesperson Hossein Mohebbi accuses Donald Trump of being dishonest about nuclear weapons. Mohebbi emphasizes the need for accurate information to be provided to the American people. He asserts that the United States has not succeeded in its military efforts against Iran. The spokesperson insists that the US should withdraw its presence from the region.
Delhi man filing ITR found ₹79 crore unidentified income linked to PAN: Tax details show a Mumbai firm was using his credentials. Know what you should do in this situation
A Delhi resident found that his PAN and identity information were used to register a fraudulent business. The GST registration, linked to a Mumbai address, reported outward supplies of around ₹79.4 crore. He claimed he never authorized anyone to use his details or conducted any business activities. Following this revelation, the Economic Offences Wing of Delhi Police registered an FIR for further investigation.
BJP alleges security, intelligence lapses during Amit Shah's Keralam visit
BJP national secretary K Surendran raised concerns about security and intelligence failures during Amit Shah's visit to Keralam. Youth Congress activists staged a black flag protest while Shah's convoy was en route. Surendran accused local police of not anticipating the protest and not ensuring adequate security measures. He also noted that Keralam ministers faced backlash from Yuva Morcha members following the incident.
No incriminating items found in house search in 2024 suo motu FIR against Suvendu Adhikari: Police to Calcutta HC
Kolkata police reported to the Calcutta High Court that a search yielded no incriminating material. The case involves West Bengal Chief Minister Suvendu Adhikari and a suo motu FIR. The FIR was related to allegations of weapons and cash being stored at a house. Adhikari's lawyer subsequently decided not to pursue the petition based on the police report. The high court dismissed the petition as it was not pressed further.
In 2004, Virginia turned dredged fossil shells into 85 acres of oyster reef in one river; later monitoring counted 76.2 million live oysters on the restored reefs
In 2004, an 85-acre reef network was built in the Great Wicomico River using dredged fossil oyster shells. Monitoring revealed that this restoration successfully supported approximately 76.2 million live oysters over the years. The design allowed for different reef elevations, enhancing survival and reproduction rates among oysters. Additionally, the restored reefs improved water clarity and created habitats for various aquatic organisms.
Woman gets six times salary hike in 5 years, shares one key career tip that helped her to increase pay from Rs 5 LPA to Rs 30 lakh
Shrasti Chaudhary shared her inspiring career narrative, depicting a remarkable journey in which she soared from an initial salary of Rs 5 LPA to over six times that amount within only five years. By strategically switching jobs, she not only secured notable salary hikes but also dispelled widely held beliefs about the risks of job-hopping.
Nidhi Tiwari performed pooja, posted ‘love yourself’ before suicide, influencer's mother says she spoke to a married man with two children then locked herself in room
Nidhi Tiwari latest news: Singrauli influencer Nidhi Tiwari died by suicide at her home on Sunday morning, hours after performing a pooja and posting a message about self love on Facebook. Her mother has told police the 30 year old was in touch with a married engineer with two children before locking herself inside her room.
Tata leadership transition, IPO unlikely to impact ratings, S&P Global says
S&P Global said a potential Tata Sons leadership transition or listing would not immediately affect group company ratings, with financial policy changes likely to be gradual. The agency said a listing would be credit-neutral near term, though greater scrutiny of capital allocation, shareholder returns and support for weaker group companies could affect its longer-term assessment.
Four US Navy sailors injured aboard USS Dwight D. Eisenhower after landing mishap; Two aviators ejected safely
On September 28, a significant incident occurred on the USS Dwight D. Eisenhower, resulting in injuries to four individuals during an aircraft recovery operation. Two aviators from Carrier Air Wing 3 successfully ejected from their two-seater plane and were promptly evaluated by onboard medical staff. Meanwhile, one sailor was taken to a hospital in Norfolk with non-life-threatening injuries.
YOUR NEWS, OUR NETWORK.
Do you have Great News you want to tell the world?
Be it updates about your business or your community, you can make sure that it’s heard by submitting your story to our network reaching hundreds of news sites across 6 verticals.