From: John P
I would like to share something with you that I read in a book by John Fitzgerald (Very Good Book) called "Seven Steps to Wealth" . In one paragraph he says:
Under Section 51(1), you can pay 10% of the total rental income to a spouse, a friend or other nominated person, as a fee for managing the books of your rental property. (It is commonly known as grocery money).
So if I managed my IP's myself, theoretically, I could pay my best mate a 10%. My question is: What's the catch??
Would that friend have to operate as a business?? Would the friend need an ABN?
Can someone enlighten me on this rather interesting little tidbit.
I would like to share something with you that I read in a book by John Fitzgerald (Very Good Book) called "Seven Steps to Wealth" . In one paragraph he says:
Under Section 51(1), you can pay 10% of the total rental income to a spouse, a friend or other nominated person, as a fee for managing the books of your rental property. (It is commonly known as grocery money).
So if I managed my IP's myself, theoretically, I could pay my best mate a 10%. My question is: What's the catch??
Would that friend have to operate as a business?? Would the friend need an ABN?
Can someone enlighten me on this rather interesting little tidbit.
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