Ok here the hypothetical.
Some hypothetical people we know who are paying of a homeloan have told us about a way to claim expenses for this as an investment property. Basically you need two parties, each paying of a home loan. You change all your address information and claim that party 1 is living in party 2’s home and visa versa, and that each pays the other rent.
In this way you can then claim for any costs such as rates and also improvements or renovations just as you would an investment property.
I have been told that a number of people, including accountants are doing this but as its likely the address swap is on paper only and if so would mean providing false information to the tax office, is their anyway this could blow up in your face? I’ve heard that the tax office does not really have any means to prove that you are in fact living in the home you are paying off but im very hesitant as it sounds too easy.
Can anyone provide some ‘hypothetical’ advice?
Thanks
Peter
It is fraud and by doing this you will be a criminal.
Even if you never get found you will need to live with what you have done.
You will also lose the CGT benefit of the home.
I am locking this topic – this forum doesn’t exist to provide an avenue to discuss ways and means to defraud the Commonwealth.
Simon Macks
Finance Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
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