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ozperp, I think it comes down to what you'd do for family no matter what. My mate was (is) desperate for the folks to live in the same city as her rather than 5 hours away - for the kids to know their grandparents, and so that she can keep an eye on them as their health is failing - at times it...

I think the rental amount is capped at about $52 per week if you are single with no kids and $62 if you have 1 or 2 ($70 if you have 3 or more). You get the max if you pay more than around $120 per week - which I reckon would happen just about anywhere these days. Unfortunately, $120 per week...

The parents are too selfish and are not willing to 'give up' their funds to their daughter to make the house more affordable. When she did suggest that to them they accused her of being unreliable:(. Long story short, the purchase hasn't happened - the other two sisters got involved, but...

The other thing is that in ACT we get to claim stamp duty as a tax deduction :) because it's actually all leasehold land. We don't actually pay any 'rent' as such on our lease, and it's a 99 year lease, which I believe can be extended up to 99 years at any time for a fee of about $450. We pay...

I think you've misunderstood me. IF they claim it on their tax returns as being rented, they will definitely be telling the Govt that it is being rented, and will be paying the land tax. My questioning is that by declaring that it is unrented, and therefore not claiming it on their tax...

So you're saying that they are better off adding all expenses to reduce further (possible) CGT rather than declaring it rented at market value, and getting cashflow now to help them fund it? I still don't really see the benefit in that. CGT can be reduced if you can pick the most beneficial...

My friend can indeed be a nice daughter helping out her parents. ACT Land Tax Act 2004 says that land tax is due only when a property is 'rented'. If the property was bought for parents to live in it, with no rent payable, then there will be no land tax payable either. You obviously misread...

If the agreement is to pay the market rent (less managing agent fees) then it wouldn't be 'cheap accom for parents' so why would the ATO then decide that it was? On what basis? There's no tax law against giving your parents money every month - because you can - to help them pay rent, is there...

Thanks Mry. At least gives me some idea why the advice may have been given as it was. Guess I'll ask them a few more questions about what they told the accountant was happening, and then show them some figures based around your example.

Absolutely I see where you are going with this, however that's an issue for another thread altogether. I'm trying to find out where my mates stand from a taxation perspective, and what would be best for them assuming that the parents can and do only pay $170 per week in rent.

:rolleyes:Kicks self in head for assuming that this wouldn't become the focus of the thread!

I agree, however the deal is all but done. The parents are offloading their house in country town for maybe $200K. They are investing this money - which a FP has told them will give them 'growth' (whatever that exactly means) and income of $170 per week - hence the amount the folks are willing...

They would have claimed that they earnt the market rent - I told them last week the ATO would deem it to be anyway. My problem is that they will have a serious cash flow issue if the place is rented at market rent, let alone at the measly amount the parents will pay. Surely ANY extra money for...

I believe in the ACT if you don't rent it out you don't have to pay land tax. So in this case as the parents will be living there, then it can be claimed that they are not renting it out. Interestingly, at lunch time another friend of mine used to rent (at a massive massive discount) from her...

Hi all Desperately need some valued second opinions. My friend and her husband are about to purchase a property for her parents to live in. At this stage, her parents will only be able (or are willing) to pay $170 per week. Market rental would be $350 to $400 per week. Loan will be for...