Quote:
Originally Posted by McLovin
Co-ownership would be easier for tax purposes, at least in the US.
A partnership is a separate legal entity. If it were held in a partnership, the partnership would have to file a separate tax return. The partnership would have to issue K-1s to each partner. Etc.
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I just looked it up in the Can. Revenue Agency rules. I conclude the main defining difference is that the partnership is set up with the intention of making a profit.
We purchased the condo with the eventual idea of our living there. So we rent it out in the meantime. As you mention there is more paperwork to set up a partnership.
Co-ownership seems to be the better way to go. There is another difference in that a business such as property rental may supply more than just a place to live. I think that I will have to do more research......
Thanks everybody for your opinions.