Can one pay,& therefore claim,work done by family members? eg: book-keeping,gardening,cleaning?
(without a trust)
If so,what sort of “receipt” would be required as proof?[confused2]Yes. But they will ahve to declare the money in there tax return (some people actually forget this bit). And work has to actually be done for the money and it must be reasonable.
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
I pay my wife $750 per property. I work full time and she looks after the kids and properties. The investment properties are in my name.
The management fee is declared in her tax return. I get the deduction against my income and she pays no tax on it as its under the income tax threshhold.
I have a mate who pays his wife $1500 per property. I think thats a bit high, but his properties are interstate.
I would be very careful to do this correctly. A good way to record it is to keep a journal of what the family member actually does for the property. Write out and keep basic receipts and ensure that they declare the amounts in thier own individual assessment. If you are going to do this, why not actually make them work for the money???
great! Thanx everyone.
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