Reluctant landlords' taxes

Keith asks:
(updated on Thursday, November 24th 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 Experts Answer:

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.

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