Hey there,
If I have a second property that has a mortgage and my parents are living in it and only paying the mortgage payments- an amount that would be below market rent.
Does this need to be declared as income?
I have been reading conflicting information on this and looking for a clear answer ☺️🙏
Thanks!
Hey @Winstonpup1,
@TaxmanJoomy40 has provided you with a great link.
If the arrangement is domestic in nature, then you don't declare the rent as income.
You need to work out if the arrangement you have is a domestic arrangement or an arrangement consistent with normal commercial practices in that area.
You can check out IT 2167 tax ruling for further guidance.
I'd recommend you visit this link: https://www.ato.gov.au/individuals-and-families/investments-and-assets/residential-rental-properties/rental-property-as-investment-or-business
Hey @Winstonpup1,
@TaxmanJoomy40 has provided you with a great link.
If the arrangement is domestic in nature, then you don't declare the rent as income.
You need to work out if the arrangement you have is a domestic arrangement or an arrangement consistent with normal commercial practices in that area.
You can check out IT 2167 tax ruling for further guidance.
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