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Re: Rent or domestic agreement?

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Newbie

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I currently live in a townhouse with my partner, the property is 100% under my ownership. He pays me the standard house share rental rate for the area, which I put on bills and the mortgage. We both consider this as rent. I assumed I would have to claim this as rental income, however I have just read about the 'domestic agreement'. If anyone has any insight or knowledge, or experience with a similar situation that they could share it would be greatly appreciated!

 

Kate

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Devotee

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Hi @Kate94,

 

Thanks for posting! It sounds like you've already checked out IT 2167 Income Tax: rental properties - non-economic rental, holiday home, share of residence, etc. ...

 

Generally speaking, payments from a family member for board or lodging are considered to be domestic arrangements and are not rental income. In these situations, you also can't claim income tax deductions. However, if the rent you're receiving is at commercial rates and you entered into the arrangement with a view to making a profit, you may be considered to have an 'at arms length' agreement and may need to report these amounts as income.

 

We can help you find information here in the Community, but we don't have enough detail about your situation to provide a definite answer. You might like to contact our early engagement team to ask for our view on how we think tax law applies in this situation - you can ask for a follow up email or call back using the form on our website.

 

Thanks!

2 REPLIES 2
Highlighted

Best answer

Devotee

Replies 1

Hi @Kate94,

 

Thanks for posting! It sounds like you've already checked out IT 2167 Income Tax: rental properties - non-economic rental, holiday home, share of residence, etc. ...

 

Generally speaking, payments from a family member for board or lodging are considered to be domestic arrangements and are not rental income. In these situations, you also can't claim income tax deductions. However, if the rent you're receiving is at commercial rates and you entered into the arrangement with a view to making a profit, you may be considered to have an 'at arms length' agreement and may need to report these amounts as income.

 

We can help you find information here in the Community, but we don't have enough detail about your situation to provide a definite answer. You might like to contact our early engagement team to ask for our view on how we think tax law applies in this situation - you can ask for a follow up email or call back using the form on our website.

 

Thanks!

Newbie

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