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From: Anonymous
I am the legal owner of a property, about to take a mortgage out to repay a small amount to my parents, who own more of it than me.
We are earning a rental income on the property, which I currently declare as my full income (but we split the PAYG payments). My parents are not declared owners for tax reasons.
To avoid capital gains tax on selling the property (which is always a possibility), my accountant has assurred me that I can:
claim the property as my permanent place of residence (I live in another city, in a rented house) for the next six years
yet still claim the interest and expenses on the property as tax deductions.
The interest is declarable b/c I will sign a a letter with my parents declaring they lent me x amount and I'm repaying them y amount by taking out a mortgage for the benefit of the tax office.
I didn't think one could earn a rental income from one's 'declared place of residence'. In theory, I guess I could if I was earning an income from my flatmate.
Grateful for any advice on this slightly confusing matter.
cheers
I am the legal owner of a property, about to take a mortgage out to repay a small amount to my parents, who own more of it than me.
We are earning a rental income on the property, which I currently declare as my full income (but we split the PAYG payments). My parents are not declared owners for tax reasons.
To avoid capital gains tax on selling the property (which is always a possibility), my accountant has assurred me that I can:
claim the property as my permanent place of residence (I live in another city, in a rented house) for the next six years
yet still claim the interest and expenses on the property as tax deductions.
The interest is declarable b/c I will sign a a letter with my parents declaring they lent me x amount and I'm repaying them y amount by taking out a mortgage for the benefit of the tax office.
I didn't think one could earn a rental income from one's 'declared place of residence'. In theory, I guess I could if I was earning an income from my flatmate.
Grateful for any advice on this slightly confusing matter.
cheers
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