i used the equity in my property to buy my father a house in both our names. i also pay half the mortgage. is this tax deductable? even though i dont get rent as such
Hello cassowary
The short answer is no.
However it may be worth speaking with an accountant about having your father pay you rent for half the house which should make all your expenses (which would be half of everything except things like water usage, electricity …assuming you are paying half council rates, water charges, insurance, repairs etc.) tax deductible. More importantly your share of the interest should then be deductible.
The rent would have to be at market rate ( or just under …which you could justify because of no management fees, no vacancy periods etc.) and this would need to be declared as income.Also ask the accountant about CGT implications of this for the future. I'm no accountant but can't see that it would make a difference as your half is not your PPOR and would therefore have CGT obligations anyway. However this needs checking.
Just a suggestion
Elka
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