All Topics / Legal & Accounting / Legalities on rent

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  • Profile photo of miikemiike
    Participant
    @miike
    Join Date: 2008
    Post Count: 111
    June 24, 2009 - 11:47 pm

    Hi All,

    Quick accounting question…well I hope.

    I currently am in my PPOR and my mate is living with me.

    Our agreement is:
    – He will be buying all the food and cleaning products etc, instead of rent.
    – All expenses (i.e. internet, gas, water, etc) will be split, in which he will pay via bank transfer to my account.

    My question is:
    – Given the following circumstances, is this legal and am I up for tax issues due to the structure?
    – The method above does avoid him paying me rent, thus income tax.

    Cheers,
    Mike

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213
    June 25, 2009 - 7:19 am

    sounds like you are not renting to him, but he is just a boarder! Sharing expenses. should be any tax if just doing this.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of hydramaxhydramax
    Participant
    @hydramax
    Join Date: 2009
    Post Count: 47
    June 26, 2009 - 11:16 pm

    So long as the 2 of you do not have a signed agreement which could pop up if there is a fallout then Terryw has got it right.

Viewing 3 posts - 1 through 3 (of 3 total)

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