Tax on Separate property investments

artair · Apprentice Joined: 20 Sep 2005 Posts: 8

Lately my friend and I have decided to invest in another friend’s project, it requires lots of resources and she asked us for help. Now, I was curious about taxes, since there are properties which are mutual between us and there are separate ones, so how high will be our taxes? On what basics will they be accounted?

issiah · Apprentice Joined: 29 Mar 2006 Posts: 6

It depends; there are several occasions which you must consider to calculate your tax expenses. Maybe you should ask for someone who is already dealing with papers and taxes, so that you know in advance what to expect. Often it may happen to people to start dealing with something and then, when they realize how high taxes will be, they are forced to end that process, since it is simply not worth trouble and resources invested.

jemstoky · Apprentice Joined: 23 May 2011 Posts: 7

In general, most deductions will be equally shared, with each spouse reporting half of the total deductions.In community property states, a distinction is made between the property that is considered legally owned by both spouses in part of their marital community.