Can wife rent from husband?

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From: Fedora Tarsitano


Time is at the essence!
While doing my research before buying, I stumbled across the perfect IP for me, where I can run my business from. The plan was to put it in my husband's name and I would rent from him.
My "Shares preferred" accountant says that the Tax Office does not take kindly to this sort of arrangement but reading on this forum I get the feeling that it is possible!
How can I set this up e.g. trusts? and can I do it before the auction on Saturday?
Thanks for ANY input.
 
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Reply: 1
From: Dale Gatherum-Goss


Hi

Of course you can! This is a common tactic and does not break any rules - written or otherwise whatsoever. Just make sure that the rent is at a commercial rate and you treat the whole thing as if you were acting with someone totally unrelated.

This is something that accountants, solicitors and doctors do all the time.

Have fun

Dale
 
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Reply: 1.1
From: Fedora Tarsitano


Thank you for your reply Dale but do I need to set anything in motion before the auction on Saturday?
 
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Reply: 1.1.1
From: Wei Ng


Dale,

I'm in a similar situation. I'm renting with my siblings & I'm planning to buy/build our home soon. Can I purchase it as an IP & rent it to them & hence claim the tax deductions? What do I list as my PPOR then if that's the case? Thanx!

Cheers
Wei
 
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Reply: 1.1.2
From: Dale Gatherum-Goss


Hi

No, nothing special at all. Your husband buys the property in his name and you rent it from him at commercial rates.

I would set up a file of information that shows where you got your commercial rates of rent from. That is, newspaper clippings, letters from rental managers in your area etc etc.

Good luck

Dale
 
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Reply: 1.1.1.1
From: Dale Gatherum-Goss


Hi Wei

Yes, you can still claim the CGT exemption whilst renting part of your home to siblings. As only part of the house is available for rent, we only claim part of the costs including interest, depreciation, and rates etc etc etc

For what it is worth, the tax office have addressed this issue in the rental booklet that they produce.

Good luck

Dale
 
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Anonymous

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Reply: 1.1.2.1
From: Anonymous


Hello,

Wow. Would such a situation apply to me? My husband works for a company who encourages them to work from home by supplying them with furniture, computer, printer etc to use at home. However they do have an office in the city.

If I bought an IP in my name, and rented it to him would this be legitimate? ie, I would claim the tax deductions from an IP, and he would get the benefit of claiming 25% of his rent back because he works from home.

Amy
 
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Reply: 1.1.2.1.1
From: Dale Gatherum-Goss


Hi Amy!

>Wow. Would such a situation
>apply to me? My husband works
>for a company who encourages
>them to work from home by
>supplying them with furniture,
>computer, printer etc to use
>at home. However they do have
>an office in the city.
>
>If I bought an IP in my name,
>and rented it to him would
>this be legitimate? ie, I
>would claim the tax deductions
>from an IP, and he would get
>the benefit of claiming 25% of
>his rent back because he works
>from home.


Yes, this can work. I have one client in particular who does the same thing. She has saved abt 6k in tax because it is a business deduction to her whilst he will save abt 4k in tax because the house is negatively geared.

The trap is to buy well and then have the rent at commercial rates - not mate's rates.

Good luck and have fun

Dale
 
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Anonymous

Guest
Reply: 1.1.2.1.1.1
From: Anonymous


Thanks Dale!

I'm going to go talk to my accountant ASAP to discuss this. Might talk to the hubbie too :)

Amy
 
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