Hi ATO community. I am considering buying a French property from my parents who are retired and living in the UK. The property generates a small income from the rental of land/outbuildings to a local beekeeper, and to graze sheep and a couple of donkeys. The income is very small and is generally offset by other expenses and taxes incurred and paid in French property taxes.
If we go ahead, I'm presuming that this income would need to be declared as foreign income, but are there any deductible expenses that could also be claimed against this amount? We would not be raising a mortgage against the property and are considering renting the entire property as a holiday let in the future. The property consists of several parcels of land and outbuildings which are all part of the same title/deeds, so taxes and services are paid on the entire title. But my question only concerns the current situation, as the ATO guidelines are very clear regarding holiday lets, but not around "part letting" of the property and other facilities.
Many thanks! Bob
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