When it comes to partnership vs joint ownership of personally owned real estate, most investors don’t realize the tax implications that come with each option. In this video, I explain why choosing the right checkbox on your personal tax return can affect your ability to claim capital cost allowance (CCA) and tailor deductions to your situation. It’s a small detail that could make a big difference.
And, really, we should be talking about ownership strategies that could be far more effective for your tax situation. Contact me and let’s talk!
Video Transcript: Partnership vs joint ownership of real estate for personal taxes
One of the boxes that are ticked for real estate investors who are renting their property on a personal tax form is whether the property is owned essentially as a partnership or there’s some form of joint ownership.
From a depreciation or capital cost allowance (CCA) perspective, the differences can be significant.
Consider that in a partnership, you have to do, from a claiming the CCA perspective, whatever your partners have done as a group. However, with joint ownership, you’re going to record your portion of the property and the amount of CCA that you want to claim.
I’m George Dube, saving the world from tax, one bow tie at a time®.
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Resources
For additional resources related to how to maximize tax deductions, see:
- 2025 tax season tips: How to save more this year
- Ownership strategies for real estate investors: Incorporate or not?
- Joint ventures and capital gains: How does this work?
More questions?
Still have questions? I want to help you Do wonderful things®, so please contact me today.
Remember – circumstances are unique! This information is summary in nature. Seek out advice from your tax advisor about your specific situation.
