Hey guys,
I've searched high and low for an answer on this and have been unsuccessful thus far, so thought I'd post on this group to see if anyone else has had this question previously.
My partner and I are converting our summer house into a self contained apartment to then rent out on Airbnb. My partner has a part time job and I have a full time job, we both own and live on the property that the apartment is being completed on.
I know that with income tax whatever we make from the listing will be taxed 50:50 (based on 50:50 property ownership) against both our incomes at our tax bracket threshold. My tax bracket is 40% I believe but my partners is 20%.
I wondered if we would be able to set up a company, and then have the Airbnb payments be paid into the company, and then my partner be paid via the company at her 20% tax bracket, effectively meaning she is employed by the company, but I am not, so the money would be hers.
Any idea if this is possible, legal and has been done before?
Thanks