Private ruling: Rental property expenses
Published: October 2012
Ruling period: Year ended 30 June 2012 | Year ended 30 June 2013 | Year ended 30 June 2014 | Year ended 30 June 2015
Date scheme commenced: 1 July 2011

Ruling: Q1: Are you entitled to declare all income and claim all expenses of the investment property from the date of the court order? | A1: Yes. | Q2: Are you entitled to declare all income and claim all expenses of the investment property from the date of the court order? | A2: No.


Relevant legislative provisions: Income Tax Assessment Act 1997 Section 8-1 | Income Tax Assessment Act 1997 Section 6-5

Reasons for decision: Summary: The income and loss from a rental property must be shared in the proportion of ownership. Taxation Ruling TR 93/32 states that the net income or loss from a rental property must be shared according to the legal interest of the owners, except in those very limited circumstances where there is sufficient evidence to establish that the equitable interest is different from the legal title. In your case, while the title of the property remains in joint names, it is considered that you are the sole equitable owner by virtue of the Court order. Therefore, you are entitled to claim 100% of income and expenses for the property from the date of the Court order. However, prior to the Court order, the income and expenses must be shared according to the legal title.

Please check this edited version to be sure that there are no details remaining that you think may allow you to be identified. If you have any concerns about this ruling you wish to discuss, you will find our contact details in the fact sheet. | Relevant facts: You and another person purchased an investment property. | As the result of a court order, the other person, among other things, was required to sell their share of the property to you for no consideration. | To date, the title has not been transferred to you because the other person has not finalised the necessary paperwork to affect the transfer.