Tax on Rental Property

[dam099]

Maybe I am misinterpreting DarraghDuane's post but I think his point might have been that you cannot transfer rental income arbitrarily from one spouse to the other contrary to the ownership position of the asset but that you can transfer the "income source" which I take to mean transfer the ownership of the asset to the spouse in which case the income would then be theirs.

 

[ubiquitous]

The % of rent is determined by the % of ownership.

There are circumstances where this rule-of-thumb would not always apply.

 

[Kitty Kat]

Only ever seen divisions specified under Property Partnership but in general the properties ownership matched, what other circumstances could it happen??

 

[ubiquitous]

Only ever seen divisions specified under Property Partnership but in general the properties ownership matched

Sorry, I don't understand what you are saying here. Can you please clarify?

One common example where someone can be in receipt of income from a property while not owning it is that of a son or daughter receiving rental income from land owned by their elderly parents.

 

[Kitty Kat]

Some property partnership are set up whereby a higher % of the profits (as opposed to rent) is deemed to go one party generally where this person has a more active role in management.

Never seen one where the son or daughter receives gross rent from land not owned by them. In the eyes of the Revenue this rent shoudl be taxed in the hands of the parents. After that it is up to them what they do with it, appropriate taxes apply if applicable. I would say that to do this the revenue would have to grant approval but I cannot see any basis but obvously each personal case is different.