Ask Allan Forum
Get expert answers to your tax questions straight from Allan, our owner and experienced CPA. It’s free, direct, and designed to help you make the best decisions when it comes to your taxes.
Hi There,
I am looking to purchase a rental property. I can qualify on my own or I can jointly qualify with my spouse. Is it possible to take the mortgage in only my name however for income tax purposes split the income with my wife? The downpayment for the property is coming from our joint account line of credit. My spouse earns less come so it would be tax beneficial to split the income with her.
Thanks
Hi Ram, if both spouses equally contributed to the down-payment for the property and the ongoing expenses are also equally shared, then the rental income can be split evenly between both spouses. I recommend that your prepare a separate agreement that states that each spouse is responsible for 1/2 of the expenses, including mortgage payments.