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Owning a second property with no real rental income and the implications on tax

Posted 4 August 2014 under Tax Q&A


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I own a second property which is an apartment in a small block of flats. My in-laws are the tenants so I don't charge rent. However, they do pay the monthly levies for the apartment.
Since I don't charge rent, would the monthly levies that they pay be seen as an income to me from the apartment? (As the owner of the property, I would normally have to pay this). Expenses that I incur on the property are rates & taxes, bond interest and insurance. These expenses exceed the monthly levies.
Is it possible to claim these expenses as tax deductible expenses in my tax return? Is it worth doing this - is there any benefit to my overall tax assessment?

This entry was posted in Tax Q&A and tagged , , , , . Bookmark the permalink.

TaxTim TaxTim says:
4 August 2014 at 17:32

You cannot claim expenses while you are not actively seeking rental and actively trying to earn income.


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