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third party house sale profit


willerby20
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Hi, not sure whether this is in the right area....

 

My friend invested a third into purchasing a property with another couple. For a while they rented out the house and shared the income.

The house was refurbished and put on the market for sale. The house sold with completion last month. She was hoping for her "share" this month, however the couple have stated that her money will only be available in April after his accounts has been finalized, income tax for the year.

I assume he his self employed. From what she tells me, it seems she will be penalized for his tax deductions ? - which i find strange. He also stated that her name isn't on the deeds,being part of the reason he says?, however she has a signed declaration of any share.

thanks, any advice grateful

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The couples tax or income is not relevant.

Your friend is entitled to her third of the equity as soon as the sale is complete and monies paid.

The 2 thirds they receive is the sum that will be of interest to the tax people as unearned income, just as the third your friend receives on her tax.

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