Header Ad Module

Collapse

Announcement

Collapse
No announcement yet.

Subsidised Rental

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • Subsidised Rental

    If I rent one of my rentals to a family member at a cheaper rate, does this become a tax issue? The property would make a smaller profit or greater loss.

  • #2
    If lossmaking, this is absolutely a tax issue. If it makes a profit, less so. In most cases, probably not. But as always there's no way to give a conclusive answer without extensive fact finding.

    Basically, given you're allowed to let you family live in the house for free if you so desire, or they might just cover your costs for you, all of this is legal. What's not allowed is claiming a loss based on below-market rents to related parties.
    AAT Accounting Services - Property Specialist - [email protected]
    Fixed price fees and quick knowledgeable service for property investors & traders!

    Comment


    • #3
      Thanks Anythonyacat, so what you are saying, it is okay as long as all expenses are not greater than income

      Comment


      • #4
        IR264 Rental Income covers this situation (page 12).

        Comment


        • #5
          thanks Arternis, spot on.

          Comment

          Working...
          X