You need to get specific advice and decide who to listen to. If you get audited the above will NOT fly. You can get done. Having said that many accountants will say it is OK providing it is only for a short period of time. So it comes down to what you can live with basically. NOTE: It's not living in it that's the issue it's the tax deductibility that is the issue.
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Can you rent your home from a trust....
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When I did a lot of investing I had 2 accountants and 2 lawyers and often had to decide which one was right. Sadly many of our laws are vague enough to be interpreted 5 ways from Sunday.
Back to your question the fact is that the likelihood of you ever getting "caught" doing what you propose is very minor but most competent specialists would say only do it short term and document it clearly. At the end of the day you are committing tax evasion claiming an investment property deduct on your own home. Simple as that really. if there are some circumstances where you have to move into your own rental because of sale of your own home or some other genuine issue then do it and document it.
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Originally posted by rocket View PostGuys please clarify.
If my trust owns the house that I live in., can we rent it out from the trust and the trust then claims tax on interest paid on mortgage & other expenses.
Excuse me for being a novice.
As Rosco (an actual accountant) alluded to though, the reasons/details matter. It is possible that two people appear to be doing the same thing yet their situations and thus tax bills are treated differently by the IRD.
The broad brush-strokes are the trust and you aren't the same "person" and one "person" can rent to any other "person" they like....we don't live in a police state.........though if you believe some the TTPA might be about to change that
Cheers
Spaceman
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