Property investment can be made in names of two or more family members
Question:
Our family is planning to make substantial investment in real estate in the names of family members. Is individual investment or joint investment an ideal option from the point of tax planning? Please advice. Sanjeev Gupta, Dubai.
Answer:
Investment in property can be made in the names of two or more family members. For joint purchase, the co-owners’ investment should be in proportion with their ownership in the property. As regards including minors, even if investment is made in property in the name of minor children the income arising therefrom will be clubbed with the income of the father or the mother who has higher income. There should be clarity while demarcating the property if investment is made in a joint property between two or more family members.
This will avoid future disputes and tax litigation. Commercial property is completely exempt from wealth tax.
Our family is planning to make substantial investment in real estate in the names of family members. Is individual investment or joint investment an ideal option from the point of tax planning? Please advice. Sanjeev Gupta, Dubai.
Answer:
Investment in property can be made in the names of two or more family members. For joint purchase, the co-owners’ investment should be in proportion with their ownership in the property. As regards including minors, even if investment is made in property in the name of minor children the income arising therefrom will be clubbed with the income of the father or the mother who has higher income. There should be clarity while demarcating the property if investment is made in a joint property between two or more family members.
This will avoid future disputes and tax litigation. Commercial property is completely exempt from wealth tax.
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