I don’t know what you will say after reading this but believe or not, I am in an awkward situation. Our elder son and his wife decided to move from family home last August, We asked them to live in one of the IPs but they declined offer and started renting. Last week we came to know that our daughter in law is pregnant. Now they want to live with us but asking us to move in a 4X2 IP. Our PPOR is only 3X1 and their bed room is very small. My wife wants to do what ever they say. My son/his wife are suggesting us to move with them in one of our 4X2 IPs, they will pay the rent and we rent out our PPOR and what ever rent received, we give it to them. ( Situation could be like this. PPOR rent $350 per week. Current rent for 4X2 PI is $390 per week (lease expires in April). They pay the different $40 per week.) We live in their home because they rent it.
I do not know tax implications, I explained my wife that they may change their mind after 6-12 months. She says, no worries, we can go back to our home then. It is an emotional issue now and I am in minority in family. Can anybody please explain me pros and cons. I doubt there are any benefits except making my wife happy, more rooms for them, $260 saving for them and for me? A gift.....Grand child. I am happy to do this but if there are Tax related issues..............we could be in deep ****.
What should we do? ....................
Thanks.
I do not know tax implications, I explained my wife that they may change their mind after 6-12 months. She says, no worries, we can go back to our home then. It is an emotional issue now and I am in minority in family. Can anybody please explain me pros and cons. I doubt there are any benefits except making my wife happy, more rooms for them, $260 saving for them and for me? A gift.....Grand child. I am happy to do this but if there are Tax related issues..............we could be in deep ****.
What should we do? ....................
Thanks.