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MB_291(I'm new)I'm new
24 Apr 2026

Hi I currently rent out my investment property for 880 a week. A friend and their family is going through a rough time and I am thinking of renting the property to them for a reduced rate.


I currently negatively gear the property. I am wondering the legality of renting out below market rate when using negative gearing.


Could someone tell me if this allowed?

162 views
1 replies
162 views
1 replies

All replies

YellowPotato(Taxicorn)Taxicorn
24 Apr 2026

Likely, if below market rate, = you can't negative gear, may claim the deductions until nil net rent


" If the property is rented out at less than commercial rent, other considerations arise and your claim for expenses may only be allowed up to the amount of rent you received."

Liked by JenniferATO and TaxTalk1234

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Negative gearing investment property and renting to friends below market rate | ATO Community