No, you cannot claim your spouse’s rental loss against your rental profit.
- Rental losses are individual and can only be offset against the property owner’s own rental income or future profits.
- Even with joint assessment, losses cannot be transferred between spouses.
Alternative Option: if the amounts involved are significant, you might consider transferring the property (or properties) between spouses. This would move the income stream to the spouse with the losses, allowing them to offset the losses against the rental profits. Such a transfer can be done without triggering Capital Gains Tax (CGT), Stamp Duty or Capital Acquisitions Tax (CAT) if the transfer is between spouses.
