Paying Income Tax on rental income

ianjohn

Hi,

Myself and my wife rent out a number of properties. The properties are jointly owned by both of us.

Were are currently taxed jointly, but going forward we may be both be taxed separately.(were not seperating!) its just for tax reasons.

Were not sure if one of us should claim all of it or part of it?

So I am just wondering if I receive all the rental income , do I need a signed form from my wife to agree to this?

sincerely

Ian C

adrianw

Hi Ian,

you would need to transfer the properties into your name solely. As you are married and living together as man and wife there is no CGT nor stamp duty but it does need to be done legally so you’ll probably incur some legal fees.

unfortunately you cannot just decide it’s your income if the income is earned from passive rental income from property investments.

ianjohn

Thanks Adrian for quick reply,

Were not going to pay for the properties to be moved every year back and forth, it doesn't make sense!

Can I rent her half of the house for a nominal fee! and thus gain the rental income, as they do with shares to get the dividend.

If we are taxed separately, can a signed document stating that my wife would be happy for me to claim the rental income not suffice?

Or will we split the rental income between us?

If we both have an online ROS account, can we both be taxed together?

Ian

ari101

You should split the rental income.