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  1. R

    6 months rent payment up front - in which tax year is it deemed as income?

    Yes, but ATO ID 2003/526 concerns a private individual letting their investment property to a relative. It applies the same reasoning. On this basis, the Commissioner appears to be changing his stance to now applying the Arthur Murray principle to passive investors.
  2. R

    6 months rent payment up front - in which tax year is it deemed as income?

    I am unaware of any judicial precedent for passive rental income. 1) Arthur Murray involved a business that was required to recognise income for services on an accruals basis, 2) The money was held in a suspense account until the services were performed; and 3) There was a history of...
  3. R

    6 months rent payment up front - in which tax year is it deemed as income?

    My understanding ... The estate agent is normally acting as agent for the landlord. Whilst an agent may owe fiduciary duties to the principal, it would normally fall far short of being a trustee for the landlord. The agent does not hold legal title to the property, nor the income derived...
  4. R

    6 months rent payment up front - in which tax year is it deemed as income?

    Section 6-5(4) ITAA97 Constructive receipt. No deferral for cash basis passive income.
  5. R

    6 months rent payment up front - in which tax year is it deemed as income?

    More likely a bare trust. Transparent for tax purposes.
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