How to organise spouse managing IPs?

[paull]

From: Paul L


My wife has stopped work to spend more time at home with the kids. So we read somewhere that a spouse could manage the affairs of the properties, and be paid by the working spouse.

Could this also apply if she finds a property and I pay her a finder's fee?

Can anyone give me some pointers on what paperwork needs to be kept for this?

Thanks in advance,
Paul

 

[DaleGG]

Reply: 1
From: Dale Gatherum-Goss


Hi Paul

This is an area that I expect the tax office to look at this year when they do their auditing . . . don't be put off by that, just be prepared.

Whilst there are no clear rules, or guidelines, on how to do this properly I would suggest the following:

You give your wife a job description of what you require of her with regard to the IP's.
She keeps a handwritten book explaining the calls that she receives or makes on your behalf.
You advise the agent (in writing with you keeping a copy) that your wife is now the sole contact point for this IP.
Your wife keeps records of income and expenses each month either on a spreadsheet, a hand written book, or a computer program such as the one that Duncan wrote.

Her salary will be small and should be on an hourly rate based on commercial wages for someone doing the same type of work.

For example - two hours for the month and maybe 4 in the month you do your tax return at say $18 per hour. . . .

I hope that this helps as a starting point and good luck.

Dale