Our property is owned by me, my partner and her parents but only me and my partner are on the deeds. Can the rental income from the property go straight to one of her parents?
Who ever gets the rent matters not as long as it is declared to the tax man . Tho they may ask why
Doesn’t matter who it goes to, it’s taxable. Fail to declare rental income and they will catch you in time.
I am not a tax advisor, however you can nominate one owner or part owner who agrees to receive and be taxed on the income from a property. E.g. if one of the owners is in the lowest tax bracket, and one one highest, it could be beneficial for the lowest tax payer to receive the income and pay the lower rate. Ask your accountant about this.
I think that the default presumption for tax purposes is that the rental income is split between all owners in whatever proportion they own the property if tenants in common. If you want to alter this then you may need a deed of trust and form 17 to change the beneficial ownership. However, if the parents part ownership is not registered then I’m not sure whether this would work.
@Duke1 This is factually incorrect.
any property has to be jointly owned ??? I own several just in my name
Duke1 is clearly spamming the forum and trying to promote the agent he mentions. There’s another account also from the same company which does this.
His inaccurate message is the best reason NOT to use them!