# How much of our rental house does my spouse "own" for the purposes of claiming rental



## Eufrades (Apr 7, 2013)

*How much of our rental house does my spouse "own" for the purposes of claiming rental*

I purchased the house before marriage, and am still the only person named on the deed. We lived there together shortly after I purchased it, and were married while living there. We moved on to another house and are now renting the first house out.
Do I claim 100% of the income because I'm the only one on the deed?
Do we both claim 50% because we are now married and it's part of the family assets?
Does she claim 50% of the increase in value since marriage, and I claim the rest?
Does she claim some other percentage?
Thank you for your help.


----------



## MoneyGal (Apr 24, 2009)

For the purposes of rental income, the house is 100% yours. Ownership of the capital gain from the property is distinct from attribution of the income from the property. 

If you and your wife are in different tax brackets / expect to have variable income over time, it may make sense as a tax planning tactic to share ownership of the home by putting her on the deed - however: 1. this is a different conversation than the ownership/attribution of the income and 2. you should get professional tax advice before you make any changes to the deed. In the absence of your wife's name on the deed, the income arising from the rental is 100% yours. 

Finally, if/when you sell the rental house, you may be able to shield part of any gain from taxation by declaring that house as your principal residence for the time during which you lived in it. Note, though, that your *matrimonial home* (for the purposes of marriage/divorce) is distinct (from a tax and family law POV) from your *principal residence.* That is, the actual building can be the same, but these are distinct concepts in law and taxation. 

I hope I haven't confused things with this additional info, but I tried to answer all of your questions!


----------



## rikk (May 28, 2012)

Apologies for butting in, MG, quick question while the topic is posted, thanks. My understanding, in my marriage the house is registered in my name, in Ontario ... I assume that I could sell the house should I choose to as it is registered in my name, and the proceeds would be mine (in reality selling would be a joint decision etc. etc.)? Divorce I know is different, division of property.


----------



## MoneyGal (Apr 24, 2009)

Rikk. Think of it this way: you actually only divide your property when the marriage ends. It's funny (to me at least) when you think about it: divorce imposes an equalization of property - during the marriage you can divide your property as unequally as you (both) like.


----------



## MoneyGal (Apr 24, 2009)

And to actually answer your question: yes, you can sell your own asset without involving your spouse. A rental house is no different from a car or a stamp collection in this regard.


----------



## rikk (May 28, 2012)

Thank you :encouragement:


----------



## Eufrades (Apr 7, 2013)

Thanks MoneyGal, That clears up everything I need to do my taxes this year. Guess it's tine to go find a good accountant.


----------

