Tenancy In Common

What is a tenancy in common? 

Tenancy in common is an arrangement where two or more people jointly own a piece of real estate. Each owner can have a different share of the property while maintaining individual ownership rights. 

Tenancy in common VS joint tenancy 

While both arrangements pertain to co-ownership, they differ in their structure and implications. Unlike a tenancy in common, a joint tenancy means all owners have equal rights to the entire property, with the key feature being the right of survivorship. This means if one owner dies, their share automatically passes to the other owner(s). 

Tenancy in common tax implications 

In a tenancy in common arrangement, each owner is taxed based on their individual share of the property. This means that income generated from the property, such as rent received, and expenses incurred, like loan interest payments, are divided among the owners according to their ownership percentage.