rent holiday

[scott]

I have just taken over the management of my IP from my PM.

As a reward to the tenant, to change their arrangement I have offerred a weeks free rent.

Tax wise is it better to send a weeks rent back by cheque or simply give a weeks "rent holiday".

Thanks
Scott

 

[Rixter]

I have just taken over the management of my IP from my PM.

As a reward to the tenant, to change their arrangement I have offerred a weeks free rent.

Tax wise is it better to send a weeks rent back by cheque or simply give a weeks "rent holiday".

Thanks
Scott

Tax wise, makes no difference. Your annual rental income will still be the same.

 

[Mry]

Unless it is a related party transaction.

Rent free week is best in case your contribution back to them is somehow deemed something other than a refund of income. But as Rixter said, should make no difference.

 

[Bargain Hunter]

Rent Free is Rent Free

Scott,

If they are changing the direct deposit details have them start a week after they transfer from the agency.

That way they don't need to put any special arrangements in place and they get an immediate reward for swapping.

Regards

Andrew

 

[scott]

Thanks everyone
Scott