Hi,
I am new here. I am thinking to lease out my property, to be managed by real estate agent. But I do not wish to declare it as my investment property. The income received does not go to me, it goes to my brother who is not working. Therefore, I am not receiving any income to be taxed upon. Is this legal?_joyce wrote:Hi, I am new here. I am thinking to lease out my property, to be managed by real estate agent. But I do not wish to declare it as my investment property. The income received does not go to me, it goes to my brother who is not working. Therefore, I am not receiving any income to be taxed upon. Is this legal?No tax l expert myself but don't see how you could claim it on tax as an investment but give away the proceeds received from it to your brother without declaring it on your tax income . Unless your brother was a ATO recognized charitable institution which would allow you to claim it under tax deductions for donations to charitable institutions because the property is in your name you have to pay tax on any profits received from it, , whether you claim the expenses or not.
Perhaps you could look at employing your brother as your personal property manager and have him charge you fees equal to the rent you receive for the place ?
No, I want to leave it as owner-occupied. I don’t want to declare the property as investment. Therefore, I’m not claiming any deductions on my tax. I’m just not sure if this is legal, leasing out the property but not declaring it as investment. I don’t get the rent.
hi,
I am also very new here so my thoughts are of a newbie but I can't figure out what advantage it would be to you if you don't want to set it up has an investment property or to claim deductions. Plus the real-estate agent will get his cut as well.It doesn't matter what you declare or what you say is happening, if you are renting your house out it is rented. If you are receving an income from it you must declare it – it is the owner that must declare it in their tax return and unless you own it as trustee for your borther then that will be you. You would be considered as gifting the money to your brother, but still assess on it. And consider that you may not pay tax on the money if you take into account all the costs such as interest etc.
Maybe you could employ your brother to look after the property – that way he could get the money still, but you could claim a deduction. Play around with the figures so it doesn't reduce his centrelink benefits or make him pay tax on it.
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
lease it to your brother, allow him to sublease the property.
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