Person A buys a house and rents it to Person B, who in turn buys a house and rents
it to Person A. Can A and B claim expenses such as rates, insurance and mortgage interest
as tax deductions?
1,098 views
1,098 views1 replies
1 replies
1,098 views
1 replies
This thread is archived and the information may not be up-to-date. You can't reply to this thread.
Yes, but you would need to be able to prove rent was at market rates - otherwise:
If your rental property is rented out to family or friends below market rate, you can only claim a deduction for that period up to the amount of rent you received. You can’t claim deductions when your family or friends stay free of charge, or for periods of personal use.
Also, there would be no main residence exemption from CGT.
All replies
Yes, but you would need to be able to prove rent was at market rates - otherwise:
If your rental property is rented out to family or friends below market rate, you can only claim a deduction for that period up to the amount of rent you received. You can’t claim deductions when your family or friends stay free of charge, or for periods of personal use.
Also, there would be no main residence exemption from CGT.
Featured articles
15 Apr 2026 · 4 min read time
15 Apr 2026 · 8 min read time