Am interested whether the following would have any issue/tax implications.
IP property being rented out per room with a room being reserved for a manager. This manager is responsible for collecting rent and ensure the property is being looked after. This manager would pay no rent as he/she is solely responsible on looking after the property.
This manager would be our parents.
So to the tax man, it would be a house being rented out room per room (lets assume there are 4 rooms in the house). 3 room's rental is declared as income say a total of $450, where the average rental for the house would be say $500 per week.
What sort of issues and or tax implications would there be compare to say us renting the whole house out and it being managed by external property manager?
PS. obviously this would only work for two properties as we only have two pairs of parents.
IP property being rented out per room with a room being reserved for a manager. This manager is responsible for collecting rent and ensure the property is being looked after. This manager would pay no rent as he/she is solely responsible on looking after the property.
This manager would be our parents.
So to the tax man, it would be a house being rented out room per room (lets assume there are 4 rooms in the house). 3 room's rental is declared as income say a total of $450, where the average rental for the house would be say $500 per week.
What sort of issues and or tax implications would there be compare to say us renting the whole house out and it being managed by external property manager?
PS. obviously this would only work for two properties as we only have two pairs of parents.