Hi Tim, My wife and I bought a house which we own 50/50. We are currently renting out that house as we want to renovate it at some point in the future and then move into it. We currently live in another rented house (ie are renting it from someone else). Would the primary residence be the residence we currently reside in (ie are renting) and the secondary residence be the house we own but are renting out? Then on the rental income, as well the associated expenses of the house we own, do we just divide it 50/50 and declare it in each of our tax returns (my wife and I)?
Yes, your primary residence will be the one that you currently live in. When you eventually move into the house that you purchased, that will then become your primary residence.
Yes, you can divide the rental income and related expenses in half and declare as such in your and your wife's tax return. Please read our blog on Rental property deductions to ensure you don't miss any expenses!
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