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Winnie says: 25 August 2015 at 23:41 I am considering purchasing a residential property for a family relative, who would stay there and contribute towards the bond repayments. However, I would not live on the premises. From a tax perspective, what is the correct approach to avoid my relative's contributions being viewed as rental income? |
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TaxTim says: 26 August 2015 at 16:02 The contributions would effectively be "rental" income. However, you would be able to off-set the interest on the bond and other property related expenses (e.g. rates, electricity etc) so as to reduce the taxable income as far as possible. See more details at the link below. Rental property deductions |
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Winnie says: 27 August 2015 at 11:52 Thanks, TaxTim! Your response has been very informative and useful. |
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TaxTim says: 27 August 2015 at 12:21 Only a pleasure - thanks for the good feedback! |
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