If a tenant is paying part,or all rent in “services” (eg renovations,gardening,etc), how would/should this be declared both to ATO, & on bank loan applications (for “rent received”)?[confused2]
Do we do a self assesment for what the amount equals? (eg: 2hrs wk = $30, therefore,do i then have to pay tax on that?? & will the bank accept it as confirmation of “rent received”?I don’t know, but would think it would have to be market rents at least for tax purposes. And you would have to pay tax on whatever way you calculated it.
For loan purposes, you could get a letter from an agent indicating what the property would rent for, but if you are not receiving any money you could not use a figure for rent for serviceability purposes.
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Misty1,
The ATO Rental Properties 2003-04 publication states on page 3 that Rental Income includes:
“Associated payments may be in the form of goods and services. You will need to work out the monetary value of these.”thanx
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