Privately managed IP

[Keifer]

Can anyone tell me how I can recognise my IP in QLD as an investment property for tax purposes? My sister lives there and is paying me rent without a real estate agent involved.

For my IP in Victoria I use a real estate agent and they send me a yearly statement which I think is called a rental agreement and I give that to my tax agent.

Do I draw up one of these myself?

Cheers
Keifer.

 

[D.T.]

Do you have a lease agreement? Is she paying normal amount of rent or are you discounting it?

Otherwise, just add up all the associated incomes and associated expenses and add them to your tax return.

 

[Simon]

There is no need to have it recognised.

If you are getting rent then just keep all the appropriate records and declare the profit/loss at tax time.

 

[Keifer]

There is no lease agreement. That's what I want to know. Do I draw one up and if so how? I would need to backdate it, right?

Are bank statements with transfers enough or do I need actual receipts. My sister is getting a discounted rent, so I'm running it at a loss.

 

[coastymike]

Discounted rent. Sounds like deductions will be limited. Fletcher v FCT

 

[travelbug]

If it was market rent you would just submit the rent along with your rates etc to your accountant to claim.

But seeing as you are giving your sister a discount you may have to assume market rent. It's not legal to subsidise someones rent then claim a loss for the govt to support you.

 

[marg4000]

If your relative is living in your IP at a discounted rent, you will be limited in what you can claim.
Seek professional accounting advice.
Marg

 

[Paul@PFI]

If your relative is living in your IP at a discounted rent, you will be limited in what you can claim.
Seek professional accounting advice.
Marg

I would seek tax advice. Accounting and tax are two different fields.