name of the person with the higher income

initially, but later as the property becomes more

profitable, this decision may be regretted.
2. Projected selling price of the property. In the year you sell
the property, you want to report the income on the person
in the lower bracket.
3. Where is the money coming from to acquire the
property? You may not have as many choices where one
spouse works and the other does not have a source of
funds. That said, there are advanced tax planning
strategies that can still be used, where done properly.
This is more complicated if the property is losing money, but
is expected to have positive cash flow in a few years and be sold
at a profit. Here, you must do an annual calculation with the
expected tax savings each year by claiming the losses for the
person with the higher income. It is not an easy calculation, but it
will help you identify the preferred tax position!

KEY INSIGHT

Whose name goes on the title is the kind of question that needs
to be settled long before you sign mortgage documents. Indeed,
if you’re close to signing, the mortgage company may deem a
name change to equal a new application — so don’t put off this
decision until the end!