Hi again. I'm writing again to clarify something, following my previously submitted questions. In a situation where I transfer the right to rental income from a property where I am sole owner to my mother or wife via a deed of trust, am I able to retain the underlying ownership? i.e. In a situation where the property is later sold, would I be signing away the sale proceeds to this person or can underlying ownership and right to rental income be kept separate in a deed of trust structure?
Thank you again for your reply. In a situation where I opt to provide my mother with 100% of the income from a rental property, which is owned solely in my name, via a deed of trust, could you please clarify the following:
1) If I incur costs related to the rental property (e.g. service charge, maintenance), can these be offset against rental income that my mother receives to reduce her taxable rental income? (event though she will not be the one paying for the expenses)
2) Does my mother need to receive rental income from the property directly from the tenant or am I able to collect the rent and then send it on to her? (Without me being due to pay tax on the rental income that I would be passing on to her)
3A) Where there is a service charge expense related to the rental property (covering building maintenance, electricity, building concierge, etc), can this be offset as an expense against renal income?
3B) The service charge is paid twice annually - if the next payment is made in August (covering the Aug22-Jan23 period), can this be pro-rata applies as an expense against a rental period beginning in September? (i.e. 5/6 of that payment being applicable - excluding the month of August, before the rental began) Or would the service charge payment have to be made once the rental period begins to be applicable as an expense?
Thank you for creating this forum – it looks like a helpful resource to navigate the tax system.
I am the sole legal owner of a property, which I am looking to rent out. Could you please help me with some questions regarding sharing the rental income?
A) Can I share the rental income with both my wife and my mother via a deed of trust? (e.g. 1/3 each – me, my wife, my mother)
B) If so, can the three-way split of rental income be specified on a single deed of trust document or is one required per recipient?
C) Am I able to create the document myself, rather than by a solicitor? (I understand that this still needs to be witnessed by someone)