Forum Replies Created
Thanks Annemarie (and all others who responded). I think I now have enough information to make an informed decision.
Cheers
Thanks again for the replies.
What are the consequences to me if I do not declare this as income and I am subsequently audited and the ATO takes the view that I should have disclosed this as assessable income? Will I be committing an offence?
Thanks for your reply.
By market rate I mean that he is paying a fair rate for the room and that I have not discounted the rent as I would if he were a family member. Also, the rent is fairly high (I live in the city and he has the master bedroom) and I think it would be difficult to categorize this as contributions to household bills only (aka he is a boarder) as I feel the ATO will take the view that there is a ‘profit’ or assessable income component to the payments that I am receiving.
If I had my time again I might consider asking for cash payment and then not declaring the amount at all. Given that I have declared this income in the past, I am concerned that if I do not act consistently by declaring all future income that I receive then my conduct will set off alarm bells in the ATO.
It appears to me that my only solution is to ask my mate to leave and that I live in the place on my own (which would obviously increase the mortgage strain).
Do I have *any* options?
