Hello do I need to Include the Income $500per week from my father In my tax return to be Included as taxable Income?
This Is to cover bills like electric, water, rates, Insurance, mortgage etc?
Or would this fall under "domestic arrangements" as It's for a family member and I don't need to Include the money as taxable Income? I feel It falls under this but just want to check.
Please explain In detail, Thank you.
Hi @FamilyMan85,
This would be considered a domestic arrangement. You don't need to include the $500 per week from your father in your tax return as taxable income. Payments from a family member for board or lodging to cover costs like electricity, water, rates, insurance, and mortgage aren't considered rental income.
Because this is a domestic arrangement, you also can't claim income tax deductions for expenses related to your father living with you. This treatment applies specifically because the payment is from a family member and is covering household costs rather than being rent at normal commercial rates.
The key difference is that if you were renting out part or all of your home at normal commercial rates to a non-family member, you'd need to declare that income and could claim related expenses. Family arrangements like yours fall outside the rental property rules.
Thanks for replying.
When you say I cannot claim Income tax deductions, would this Include the mortgage for the house? thank you
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