Shared Ownership (Partnerships, Trusts)

When you click the Share icon or [F8] Tax automatically shares the Net rental income and creates a corresponding Rental schedule for each co-owner. If the Rental schedule attached to the primary taxpayer (the host return) and any co-owner (destination returns) involved in the distribution are also maintained in the practice's Tax ledger, then the address of the rental property will be completed automatically.

In cases where straightforward splitting of a rental property's income and expenses by fixed percentages is to be performed, click Share to automatically apportion the rental details to this and the other affected returns. The Share column will only be populated when sharing has been done. Sharing is automatic on exiting the Rental schedule or may be done at any time during data entry of the schedule when you click Share or [F8].

For Accountants Enterprise and Series 6 & 8, when apportionment of income and expenses varies on an ad hoc basis between co-owners, click [F5] to copy the original schedule to the other owners, and edit each according to requirements.

When re-copying a rental schedule, the destination return's original copy will be overwritten if the address matches exactly that of the rental property already on file for the destination return. This avoids accidentally adding more than one schedule for the same property.

Editing Shared rental expenses

For those instances where one owner of a property incurs a larger proportion of an expense than another owner, when entering amounts in the 'Host' rental schedule, do NOT enter an amount in the Gross amount column.

Amounts entered in the Gross amount column will ALWAYS be distributed to the return indicated in the 'Sharing of income and expenses' section of the schedule whilst the amounts in the Share column will NEVER be distributed.

The amount in the Share column will need to be edited for both the Host return and for each Return the rental income/loss is distributed to, to reflect the correct amount for each property owner.

This applies to any expense where one owner expends more than another.