I act for several members of the same family (mum, dad & son). Between them they own a number of properties jointly. One particular property is legally owned by the father (I assume that was the way they could obtain the mortgage). But they say it is joint by the father and son - they contributed 50% of the deposit each and assume joint responsibility for the property and divide profits 50/50. How would this be treated for tax purposes?
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this is a property law question
if they contributed half the deposit and the mortgage paymenst are funded from the rental income then its 50 50 - if ongoing contributions are not 50 50 then the situation might be different - there is a case up before the supreme court soon on this i believe
Deed of trust...
I have a number of clients who are in a similar situation. By having a deed of trust in place, cements the fact that the properties are held 50/50 despite the title deeds and mortgage being in a sole name.
A solicitor would be able to provide a formal deed of trust but even a simple declaration, signed by the respective parties and witnessed by an independent is sufficient.