Have a Family Member Living in Your Rental Property?
If you have a family member or associated party living in your rental property, there are different tax rules that apply to this situation. Based on the arrangement you have with them, the following rules apply.
If you’re not charging them any rent – you don’t need to declare this rental property in your income tax return and you can’t claim any costs.
If you’re charging them less than market rent – you will have to declare the profit you make in your tax return, if you are making a loss then you can’t claim this loss.
If you’re charging them full market rent – this is treated as a normal rental property & all profits or losses will need to be declared/claimed and included in tax returns.
Please take time to consider your situation and contact us if you’d like to discuss this further to make sure the correct and best tax outcome is being achieved for you.