Does anyone know how to work out who is entitled to how much of the tax refund in the following situation:
Husband & Wife purchase a rental property as tenants in common 99 to the husband & 1 to the wife as the husband has a much higher income of $70k compared to $15k for his wife.
The rental property has always made a loss so the husband gets a big refund due to his portion of the loss being used at the top marginal tax rate.
They seperated at the beginning of the 2011 financial year and are trying to decide how to work out the refund split as if they were entitled to 50/50 as they are presuming would be the case in a matrimonial split.
The rental property was sold in the 2011 financial year for a loss.
Has anybody been in this situation and is there a standard formula or calculation that can be used.
Husband & Wife purchase a rental property as tenants in common 99 to the husband & 1 to the wife as the husband has a much higher income of $70k compared to $15k for his wife.
The rental property has always made a loss so the husband gets a big refund due to his portion of the loss being used at the top marginal tax rate.
They seperated at the beginning of the 2011 financial year and are trying to decide how to work out the refund split as if they were entitled to 50/50 as they are presuming would be the case in a matrimonial split.
The rental property was sold in the 2011 financial year for a loss.
Has anybody been in this situation and is there a standard formula or calculation that can be used.