- Joined
- Jul 25, 2017
- Messages
- 13
I apologize for bumping this thread up again but I have another question.
I own a rental property with a JV 50/50 partner from which gross income is about $36k per year. After deductible joint expenses (interest payments, taxes, repairs etc.) we are left with ~$8k. Now, we have not deducted our personal expenses yet (i.e motor vehicle expense). My partner barely has any personal deductible expenses while I have quite a bit. How do you deal with this?
-If we use CCA to depreciate our property for that remaining $8k, we are deferring taxes that I could deduct with my personal expenses and not pay.
-If we split the remaining 8k in half and I deduct my expenses, my partner will have to pay taxes for his half.
My partner obviously wants to depreciate the property so that he will pay no taxes this year.
What do you normally do?
I own a rental property with a JV 50/50 partner from which gross income is about $36k per year. After deductible joint expenses (interest payments, taxes, repairs etc.) we are left with ~$8k. Now, we have not deducted our personal expenses yet (i.e motor vehicle expense). My partner barely has any personal deductible expenses while I have quite a bit. How do you deal with this?
-If we use CCA to depreciate our property for that remaining $8k, we are deferring taxes that I could deduct with my personal expenses and not pay.
-If we split the remaining 8k in half and I deduct my expenses, my partner will have to pay taxes for his half.
My partner obviously wants to depreciate the property so that he will pay no taxes this year.
What do you normally do?