Paying lower earner property management

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From: David Brady


Hi all,

I have recently come across the idea that I can pay (in this case) my wife for the property management/bookkeeping for our IP's.
Properties are 100% in my name and am on top tax rate.

Anyone have any experience with this?

Issues could be;

* Fair value
* GST
* Separate account.
* Log book

I figure if this is possible, that $15 ph/ 1 hr per week x 52 weeks would be a fair figure.

Thanks in advance.

Zulu.
 
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Reply: 1
From: Michael G


Hi,

I think the allowable figure is 10% of rent (market value rent).

You should be able to check this somewhere in the ATO website.

Michael
 
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Reply: 1.1
From: Caz .


Make sure you cross the Ts and dot the Is as far as documenting the fact that you are paying her for the service in the eyes of the ATO

Caz
 
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Reply: 1.1.1
From: Rasputin .


Does she/he need any accreditation/traiing to do property managment , what are the laws/regualtions regarding this///
 
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Reply: 1.1.1.1
From: Greg Mitchell


I have been paying my partner to manage my properties for about 5 years now,I was a little concerned when I was audited by ATO last year but it did not present itself as a problem I pay her a flat 10% qualifications was not an issue.

It did highlight that accurate record keeping can go a long way to justify claims, and maximise your (legal) deductions.

GregM
 
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Reply: 1.1.1.1.1
From: David Brady


Thanks to all,

10% it is.

Zulu
 
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