Do we need a partnership tax number?
Question from John Patterson updated on 21st August 2008:
My wife and I have bought a unit which we have rented out. We intend to split the income between us for tax purposes. Do we need to get a partnership tax number or can we just split the amounts and put it on our individual returns?
Our expert responded:
Whenever a property is owned between a husband and wife in their personal names, it is generally accounted for on a 50/50 basis and does not need a formal partnership agreement. It would only be done differently to that if there was a formal partnership agreement. If a split of other than 50/50 is wanted, then we would recommend using an LAQC to own the property, rather than in your personal names.
Kenina Court is a director of Acorn Solutions Limited, an accounting firm dedicated to working with clients to help them create wealth. She is an avid property investor, entrepreneur and seminar presenter on asset protection and wealth strategies.
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