James Darmon highlights some potential advantages of operating property rental activities as a partnership business as opposed to mere joint ownership.
The purpose of this article is to consider whether there are advantages in joint ownership of property or holding property in a property investment partnership. It is assumed for the purposes of this article that property is already held jointly. If this is not the case, but the parties want to arrange for the property to be jointly owned, careful consideration of the tax issues will be needed.
An article of this length can only offer an overview of the main issues; it does not address all situations. A detailed analysis of the issues will be needed based on the particular circumstances in each case.
Is there a partnership?
The first
