ATO Community

Re: Can I claim a rental deduction for payments made to my wife who is managing my rental property?

Newbie

Views 831

Replies 3

 
1 ACCEPTED SOLUTION

Accepted Solutions

Most helpful response

Taxicorn

Replies 0

I wasn't suggesting that you could just curious if she also intended to declare the income.

 

First of all, payments between spouses are almost always argued to be of a private nature.  It is very difficult to prove that transactions between spouses are bona fide without proper paperwork being kept to justify the transaction.
Secondly, how does the spouse operate?

 

How did you arrive at the fee that was charged? Is it comparable to the going market rate for the work?
Is there a written agreement/contract for the work you perform?
Are invoices generated?
Do they have an ABN?

 

Two recent cases, Brown Vs FCT (2010) and Frances vs FCT (2010) both failed in their attempts to pay their spouse an amount to manage their properties.  Brown attempted to pay $25,000 plus $35,000 super, Frances tried to pay $5,000 plus $70,000 super.

 

 

3 REPLIES 3

Taxicorn

Replies 2

Will she be declaring them as income?

 

Newbie

Replies 1

Yes. She will declare it as income in her return. Thanks!

Most helpful response

Taxicorn

Replies 0

I wasn't suggesting that you could just curious if she also intended to declare the income.

 

First of all, payments between spouses are almost always argued to be of a private nature.  It is very difficult to prove that transactions between spouses are bona fide without proper paperwork being kept to justify the transaction.
Secondly, how does the spouse operate?

 

How did you arrive at the fee that was charged? Is it comparable to the going market rate for the work?
Is there a written agreement/contract for the work you perform?
Are invoices generated?
Do they have an ABN?

 

Two recent cases, Brown Vs FCT (2010) and Frances vs FCT (2010) both failed in their attempts to pay their spouse an amount to manage their properties.  Brown attempted to pay $25,000 plus $35,000 super, Frances tried to pay $5,000 plus $70,000 super.