Splitting depreciation

Our Experts Answer:

Where a partnership arrangement has been put in place with a 50/50 splitting arrangement, this will need to remain consistent and should not be altered simply because it is self serving to do so. When determining if the result from a jointly held property should be split evenly case law suggests the commissioner takes into account whether contributions to the investment are made from matrimonial income and who is recorded as an owner on the title to the land and whether both parties are jointly liable for the mortgage. In most cases this ensures that partnerships between husband and wife split income earned 50/50.