PAYG Withholding (old 221D)



From: Peter Dean

On the PAYG withholding form, Section C on Rental Details talks about the percentage owned and states that a property bought under Joint Tenancy can only have the interest in the property shared equally. Purchasing under Tenants in Common gives the opportunity to allocate shareholdings, hence maximum tax deductions across different income earners.
Can someone please help me with the following?
I have a property that is owned under Joint Tenancy but has on the Transfer of Land a shares arrangement that has more person with 80% of shares and the other 20%.
Does anyone know if the income/tax/deductions can be shared based on the percentages despite it seeming to be in conflict to what is stated on the tax form.


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Reply: 1
From: Les .

G'day Peter,

Sorry, mate - missed this one when you posted - just found it while trawling back thru the forum (new posts become "old" posts VERY quickly these days).

At one time, I posted (OK, OK, several times ;^) the ATO website reference to their Property Investment Handbook. I'm almost ashamed to say I now don't know the current URL - but if you trawl thru the website, use Search, etc. I'm sure you'll find it.

In there, it puts a couple of examples - and (memory here) they state that a Joint Tenancy is ALWAYS 50/50 - where Tenants in Common may have any ratio (80/20, 99/1, 50/50, etc - you choose!!)

So, from your post you mention you are a Joint Tenant - thus, 50/50 IS IT !!! There ain't no other way according to the ATO once you have gone "Joint" !!!!

Check this out for the future - you may choose to go "Tenants in Common" in future (but DO check the differences - one, I recall, is that in the event of one's death, the property DOES NOT automatically revert to the other - in the case of "Joint", the latter is automatic). So check it out - you may wish to stay "Joint"


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