February 22, 2017 Rebecca Mackie

5 Investment Property Ownership Structures – Joint Ownership

Rebecca Mackie

Rebecca Mackie

Partner
Rebecca Mackie has extensive experience dealing with tax and structuring advice for property investors and developers.

There are 5 major ownership structures in which you can hold investment properties, and each one has its pro’s and con’s. In my second article we will be looking at Joint Ownership.

Joint ownership is another common way to own property, in fact most couples own their home in this way. In this instance the property is owned in joint names and if one partner should pass away, then the surviving partner (joint tenant) automatically owns the whole of the property. The deceased’s interest in the property does not form part of their estate and is not available for distribution to the beneficiaries of their will.

I come across many couples who own investment properties in this structure, typically when they start renting their former principal place of residence. This means that each person will declare half of the income and claim half of the expense in their tax returns. The percentage of ownership can NOT be altered for taxation purposes.

This ownership structure is great for home ownership and couples wanting to keep things simple for property investment, or couples who earn similar wages. However, if a couple have a significant difference income, joint tenancy would not be recommended as it will not give them the best tax advantages.

Short and long term plans, lifestyle, tax advantages and capital protection all need to be taken into consideration when determining the best structure to own your investment property in. As always, remember to speak to us on 03 8393 1000 before you purchase to ensure your ownership structure is suited to your individual needs.

Rebecca Mackie, Partner, Paris Financial

Follow me on Twitter

5 Investment Property Ownership Structures Article Series

, , , ,
Rebecca Mackie

Rebecca Mackie

Partner
Rebecca Mackie has extensive experience dealing with tax and structuring advice for property investors and developers.

Thank you for providing your email address. You’re now connected with our Small Business Tax Champions.

Do you want insight into the latest tax news and cutting-edge financial advice?

*Required field