renting a spouse?

Viewing 18 posts - 1 through 18 (of 18 total)

philster
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@philster
Join Date: 2003
Post Count: 1
August 20, 2003 - 1:26 am
Hi all, A first time poster
My Question.
Can you legally rent a negative geared property to your spouse and claim the associated Tax deductions.
We are seperated, my wife will live in the rental and pay rent to me.
Phil.
aussierogue
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@aussierogue
Join Date: 2003
Post Count: 983
August 20, 2003 - 1:30 am
sorry – i misread – i thought you were renting your spouse
thats a whole new forum
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trueblue
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@trueblue
Join Date: 2003
Post Count: 142
August 20, 2003 - 1:43 am
No reason why not if your ex spouse pays market rates. There are lots of people who rent properties to their parents, in-laws, brothers & sisters without any problems with the ATO.
MJK
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@mjk
Join Date: 2003
Post Count: 157
August 20, 2003 - 2:01 am
It may be a bit difficult if the Spouse owns half the property. Wouldn’t you have to split the rent for Tax purposes.
MJK
philster
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@philster
Join Date: 2003
Post Count: 1
August 20, 2003 - 2:10 am
Thanks Guys
No the property will be in my name fully.
Phil.
P.s may be it would be easier if I could rent a spouse!
Stuart Wemyss
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@stuart-wemyss
Join Date: 2003
Post Count: 598
August 20, 2003 - 2:41 am
Renting a spouse would obviously relieve us (the males) of the problems associated with ownership (e.g. maintenance, remembering anniversaries etc.).
Yes, I like the idea of renting.
(I hope my wife doesn’t read this post!)
Cheers
Stu
Property & Finance News
at http://www.prosolution.com.au
aussierogue
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@aussierogue
Join Date: 2003
Post Count: 983
August 20, 2003 - 2:48 am
stu – there are a few other jokes about yields and vacancy rates. (i also hope my wife is not watching).
the forum is a bit negative today so we need a laugh
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Melanie
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@melanie
Join Date: 2003
Post Count: 382
August 20, 2003 - 3:11 am
Just listen to you lot, tired of all those yummy dinners, clean clothes and warm tidy home already huh …. hang on my boy does most of that stuff, hmmm, maybe he’d rather have a rental too …[]
Mel
raynajb
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@raynajb
Join Date: 2003
Post Count: 3
August 20, 2003 - 4:25 am
Related to the above discussion, could I own a propery in my name, and rent to to my girlfriend (while I co-habit with her in the same property)?
Cheers,
Brad
MJK
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@mjk
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Post Count: 157
August 20, 2003 - 4:55 am
Brad,
I think what that is called is a “rort” (spellchecker).
MJK
Melanie
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@melanie
Join Date: 2003
Post Count: 382
August 20, 2003 - 5:26 am
Brad,
As long as it’s known to be your place of residence yes I think you can rent to your girlfriend IF she has a separate bedroom in the house … might be wrong but I thought that’s what an accountant told me once – comments anyone??
However, if you are pretending not to live there and claim as 100% rental, refer definition of ‘rort’ …
[]
Mel
Terryw
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@terryw
Join Date: 2001
Post Count: 16,213
August 20, 2003 - 6:04 am
Is she your legal spouse? If you are separted it should pose no problem as long as it is all done at market rates. But even if you are not legally separated it may pose no problem. Give the ATO a ring and ask. (also ask for the name of the staff member you talk to).
Terryw
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maximus
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@maximus
Join Date: 2003
Post Count: 189
August 20, 2003 - 6:26 am
I’ll pay someone to rent my spouse, just kidding, gotta go, here she comes.
Nothing Darling, just sendind an email.
Marty
daretotry
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@daretotry
Join Date: 2003
Post Count: 14
August 20, 2003 - 11:35 am
Wow…I notice that the spouse being rented out automatically became a Female!!!
Im sure there are a few ladies who would also like to rent out their spouse…or rent a new spouse…maybe a spousal exchange?
from
The female ‘spouse’
DonRicci
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@donricci
Join Date: 2003
Post Count: 1
August 20, 2003 - 12:12 pm
“No reason why not if your ex spouse pays market rates. There are lots of people who rent properties to their parents, in-laws, brothers & sisters without any problems with the ATO.”
Hi everyone, my first post!
What is the ATO’s definition of market rates? I rent a villa to my mother-in-law for what we might call a favourable rate. Should it ever be queried by the ATO could I justify it with the argument that the tenant enjoys the rate because she is a super tenant, clean, reliable etc etc.
Thanks for the great forum.
Don
spider_2
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@spider_2
Join Date: 2003
Post Count: 79
August 20, 2003 - 1:59 pm
Gidday philster,
I agree that if everything is done the right way then you should be fine.. To help clarify situations there are some good publications from the ATO. Check out “www.ato.gov.au” or call Publications Distribution Service on 1300 720 092 and if all else fails then call Personal Tax Infoline on their toll free number 13 28 61.
That is what we pay taxes for, so you may as well let the ATO work for you.
Have a good one,
Spider
Lawry73
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@lawry73
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August 22, 2003 - 2:30 am
This is a funny post.
Melanie
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@melanie
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Post Count: 382
August 22, 2003 - 2:37 am
DonRicci,
I’d be a little bit careful – know someone who was caught out taking a low declared rent and a little bit extra under the table, electronically, from the same person, doh!! Generally I believe you’re clear unless for example it’s a grown up child eg 20yo attending uni, whom you claim as dependent for some purposes eg private health care & medicare levies, and independent for others eg paying ‘rent’ on your investment property …. ATO not so silly max.
Also wanted to drag this one back up cos I think it’s funny too …. !
[]
Mel