Private ruling: Beneficial ownership and rental property expenses
Date of advice: 30 October 2019
Published: January 2020
Ruling period: Year ending 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Are you assessable on 100% of the rental income of the property after the date of the court order? | A1: Yes Having considered your circumstances, and the relevant factors relating to your situation, the Commissioner accepts that there is sufficient evidence to establish that the equitable or beneficial interest is different from the legal title between the date of the Family Law Act 1975 court order until the name on the title deed was changed to be just in your name. You leased the property and are required to declare all the rental income and are able to claim all allowable expenses from the date of the court order.

Relevant facts and circumstances: You purchased a residential property with your then partner as joint owners. You resided at the property in a domestic arrangement until the relationship ended. During this time you both contributed to the mortgage repayments and other ownership costs. After the separation a court order was prepared to document an agreement, to set a deadline for the settlement, and outline the financial responsibilities for each property. The deadline was set after the date of the court order. The property remained in both names for some time after the court order. You have borne the cost of all expenses related to the property from the date of the court order.

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