IP maintenance deduction

[Avatar1234]

hi all i just bought a IP and i know that most of it deductible in some form.

however i will be renting it to my family member and also i will maintain the house myself like gardening etc etc. can we claim this handwork as deduction?

also with renting to family what paper work is needed to show ato that it is rented and is IP?

 

[Terry_w]

hi all i just bought a IP and i know that most of it deductible in some form.

however i will be renting it to my family member and also i will maintain the house myself like gardening etc etc. can we claim this handwork as deduction?

also with renting to family what paper work is needed to show ato that it is rented and is IP?

I assume you will have a written lease at market rates. if so generally no different to renting to a stranger. see s26-35 ITAA97

 

[Avatar1234]

Ta

how to decide market rates, when i search websites rents are all over the spectrum from 350 to 400 or so. how to chose which price per week?

 

[Paul@PFI]

"most of it is deductible"....Not sure what that means

Retain in your records the range of market rates used by you to determine that you are receiving market. Without it the ATO would query the % of deductions allowed. In practice they may just deny all the deductions and let you object to the view. If you can support how you determine the market rent and regularly review it !! then they would not have a concern.

No you cant claim your own labour. Try and avoid "clever" ways to inflate deductions.

 

[D.T.]

how to decide market rates, when i search websites rents are all over the spectrum from 350 to 400 or so. how to chose which price per week?

Read between the lines mate. Pick a number that's reasonable and justifiable.

The other question you asked is about maintenance etc - if you do this yourself you can't claim your own labour time.