Taxation

Running head: TAXATION
Taxation
Name of the student:
Name of the University:
Authors note:

1TAXATION
Answer to question 4:
Issue:
To ascertain whether the rental property’s loss incurred should be proportionally
allocated of the taxpayer’s legal interest.
Rule:
The co-owners of a rental possession should divide the net profit or loss from that as per
the guidelines of “Taxation Ruling of TR 93/32”. The taxation commissioner accepts this
guidance of division of this amount among the co-owners for the income tax (Becker et al 2015).
This co-owner partnership does not fall under general law since they do not run a
business but they are liable to pay tax as per “Taxation Ruling of TR 93/32”. The agreement
between the co-owners, may it be written or oral, does not affect the sharing of the profit and loss
from the rented property (Richardson et al 2015).
The co-owners of the rented property will hold this possession as tenants in common or
joint tenants. The lawful renter’s interest is the noticing feature of tenant in common. The
income or loss and he co-ownership of the property is controlled by this interest.
The co-owners of the property will hold the same legal interest. In terms of nature,
duration and extent, their interest will be the same. Partnership of jointly owned rented property
originates the tax law partnership that ATO identifies as partnership. The taxpayer and his wife
possessed two units of the property that were rented as the citation of “McDonald v FC of T