Reluctant landlords' taxes
Question from Keith updated on 24th November 2016:
Our son was bankrupted and was about to lose his family home of 13 years to the bank. As parents In our late sixties, we were fortunate to be able to borrow enough to purchase his home and he has become our tenant.
We are reluctant landlords with no other properties except where we live. His rent is only sufficient to meet mortgage interest, rates and insurance. We will never make a taxable profit and wold never claim a taxable loss. So my question is: Do we have to lodge a tax return?
Our expert Mark Withers responded:
Where you derive non source deducted income there is an obligation to file a tax return. If your son is paying market rental you should make the best of the situation and claim the deduction you are entitled to.
Mark Withers and his team at Withers Tsang & Co specialise in advising on property related transactions, valuation and restructure services and tax planning.
