Caution: Joint ownership and joint loan

"Joint ownership" and "joint borrowing" are always issues related to home sales, as they are important options for homebuyers who don't yet have the income to fully finance a mortgage. However, from an investment perspective, joint ownership and joint borrowing are very risky and require extreme caution. They involve the loss of potential returns and several legal and financial benefits. Therefore, there are five key points to watch out for:

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1. Joint ownership of a house can present problems during the sale process if disputes arise among the co-owners.
This is because all co-owners have ownership of the house, and a sale requires the consent of all co-owners.

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2. The possibility of saving on income tax by averaging the proceeds from a jointly owned house is only possible in certain cases.
Typically, this is only feasible when selling jointly owned property acquired through inheritance, gifts, adverse possession, or other means where the joint ownership was subsequently transferred to another individual.
In cases of joint sales, conditional sales, or exchanges, there is no opportunity to save on taxes if the property was jointly owned simultaneously.

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3. Buying a house under joint ownership means you lose the right to claim a tax refund when selling the same house to buy a new one.
This is because this right is only granted to income from the sale of a house by an individual. However, the Revenue Department considers the sale of a jointly owned house as taxable under the name of a general partnership or a group of individuals that is not a legal entity, and therefore it is not eligible for this right.

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4. Co-signing a loan to buy a house reduces your ability to borrow money for future house purchases.

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5. Co-signing a loan reduces the taxable income granted for interest on the home loan.
According to the Revenue Department's regulations regarding tax exemptions for joint loans, each individual is exempt from income tax on a proportional basis, but the total exemption cannot exceed the actual amount paid and a maximum of 100,000 baht.

In summary, it's better to avoid joint ownership and co-signing loans if possible, as they may become a burden later!

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