small payments to parent for work or maintenance

[chopstick]

Just a quick hopefully simple question if I wanted to pay my father to do some painting and minor maintenance at my ip as he isnt working or earning an income does that create issues with me claiming it as a deduction ?

is there some formal requirement he would have to give a receipt or tax invoice or something like that ?

is the work involved too much hassle for the sake of a couple of hundred dollars ?

 

[womble66]

Just a quick hopefully simple question if I wanted to pay my father to do some painting and minor maintenance at my ip as he isnt working or earning an income does that create issues with me claiming it as a deduction ?

is there some formal requirement he would have to give a receipt or tax invoice or something like that ?

is the work involved too much hassle for the sake of a couple of hundred dollars ?

you would only be able to claim material costs for the repairs as your father will need to be a business to issue an invoice for tax purposes to be able to claim any wages you pay him.

the saving you will make on labour on paying a family member rather than a tradie should offset any tax advantage and this also helps out the family member, in this case yoour father.

unfortunately you cannot have the best of both worlds.

 

[wylie]

I have painted houses for my parents in the past, been paid, claimed it as income and they have claimed on it. Our accountant wouldn't allow this if it was not right (at least I hope so).

 

[Pa1nter]

I think if you did it right,invoice,pay it into a bank account and be upfront about it as Wylie said I cant see an issue.
If you pay him cash,no invoice and then claimed it I am sure you would be taking a risk.