non married landlord income

jimmycrackcorm

What's the taxation implications in this scenario.

Unmarried couple.
They have kids and and own an apartment. They've decided it is too small and instead rent it out and rent a house themselves for their family which costs more than their mortgage. The apartment is in serious negative equity.

They didn't realize the tax implications of this and now finding out have to reverse the decision. But what are the actual tax implications?

They aren't married. He works but she doesn't so has no income. The apartment is rented out in her name and into her account.

They would like to keep the arrangement but it depends on the tax treatment. So the question is who taxable on the rental income and what level?

Geuze

Surely the apt rental income accrues to whoever owns the apartment?

If they both own it, then 50/50 split of rental income.

I presume the split comes after deductions, so it would be a split of the net rental profits?

jimmycrackcorm

Geuze wrote:

If they both own it, then 50/50 split of rental income.

But they aren't assessed on a joint basis. They don't benefit from any common tax credits either as they are unmarried.

Lockedout2

The income goes to the owner so if they own it 50:50 then they share the income 50:50!