• LinkedIn
  • YouTube
  • Twitter
  • Facebook
  • Google+

Splitting ownership means splitting tax

by on
in Small Business Tax

Q: I'm buying rental property with my brother for $425,000. Although we are joint owners with 50 percent ownership rights each, I'm putting $50,000 down, and he is putting down only $30,000. Will I be taxed on more of the rental income? S.S., via e-mail

A: No. If you legally own the property 50/50, half the income is taxable to you and the other half to your brother. This assumes that your brother takes on a greater share of the mortgage debt on the property, since your down payment was greater. When you sell the property, the amount of the taxable gain will reflect your basis of $50,000, plus your share of the debt used to buy the place. Note: State law may affect the taxation of your jointly held property.

Like what you've read? ...Republish it and share great business tips!

Attention: Readers, Publishers, Editors, Bloggers, Media, Webmasters and more...

We believe great content should be read and passed around. After all, knowledge IS power. And good business can become great with the right information at their fingertips. If you'd like to share any of the insightful articles on BusinessManagementDaily.com, you may republish or syndicate it without charge.

The only thing we ask is that you keep the article exactly as it was written and formatted. You also need to include an attribution statement and link to the article.

" This information is proudly provided by Business Management Daily.com: http://www.businessmanagementdaily.com/22904/splitting-ownership-means-splitting-tax "

Related Articles...

    No matches

Leave a Comment