Looking at separating, wanting to keep property ( rental income)

[Neo]

Looking at separating with my husband ( not easy - let’s not talk about the how’s and whys).

We own ( with mortgage) a property that we live in - it also brings in $50k per year (2 boarders and 1 unit).

I may need to go on benefit 😞
Is there any way going forward that I can receive the rental income ( not as earnings) I believe I can only earn $80 per week before the benefit is reduced.

The boarder income should not affect my benefit. I have an illness that causes tiredness - otherwise I am keen to get out there and work.

I am hoping to take over the mortgage ( and pay husband out).

Thanks in advance

Neo

[Davo36]

Sorry about your illness.

But you're really asking how you can hide income...

Probably not a good idea.

[McDuck]

Looking at separating with my husband ( not easy - let’s not talk about the how’s and whys).

We own ( with mortgage) a property that we live in - it also brings in $50k per year (2 boarders and 1 unit).

I may need to go on benefit ��
Is there any way going forward that I can receive the rental income ( not as earnings) I believe I can only earn $80 per week before the benefit is reduced.

The boarder income should not affect my benefit. I have an illness that causes tiredness - otherwise I am keen to get out there and work.

I am hoping to take over the mortgage ( and pay husband out).

Thanks in advance

Neo

There may be some other options.

Depending on how well you and your husband can work together from now on.

I guess he has the same accommodation and income requirements that you do.

If somehow the income from the unit could be piped into solving his accommodation requirement, you could solve two problems simultaneously without all the cost of a middleman.

If you really can't work together, is there a common acquaintance that can act as a middleman?

At a later point you can reformulate a plan to increase the financial distance.

Get everything in writing. Get legal assistance.

[Rosco]

Start a company …..use company to buy property(from you & your husband)…..company rents you a portion of property and the rest to boarders/unit.....income goes to company not you so benefit should be unaffected.( if you use this money for "yourself" then Davo36 was right and shame on you)

Often government departments look at related party income as well. So if you own all the company, then the government department would normally include any company profit as your income. Also if you receive regular payments from an entity, for some income tests this is included as income too.

There is also another issue with this. If the company retains the profit, it is the companies money and not yours. If you have advanced the company money, then no issue, it can just repay you. If you haven't advanced the company money, then you will have an overdrawn current account, and the company will have to charge you interest, generated more company profits and more tax to pay.

Company would pay 28% tax, which is likely to be higher than your personal tax rate.

There might be other ways of doing what you mention, but these would probably be considered benefit fraud!

Ross

[Ross Osborne]

WINZ questions whether you share the property with anyone. So the fact you have boarders will affect your benefit, or any extra top ups.

Rosco, would behaving the property in a trust be the way around this?

[jack2016]

join the green party and ask their MPs how to do it

[jack2016]

or Winston Peters, how he accidentally did it

[brokerman]

No such thing as taking over a mortgage, the old one will be repaid and a new one granted. Not a bank deal however there may be alternatives to get you where you want to be.

[BlueSky]

https://www.classic.ird.govt.nz/reso...r1037-2019.pdf

[BlueSky]

If you dont mind me asking - what is this illness called?

genuinely interested as someone close I know is struggling with this.

As for me I find that I am tired after slaving for 10+ hrs a day. 9 hrs at work, 1 hr in traffic and 1 hr exercise