SearchRenting income considerations
Yash asks:
(updated on Thursday, April 27th 2017)
I am about to transfer my property to a company and rent a property somewhere else. The rental income is slightly more than the interest charged on the mortgage. Will the difference be taxed as separate income and will I be able to claim anything on the house I am going to rent in?
Our Experts Answer:
The company can claim the interest on money it has borrowed to buy the house from you along with other holding costs including rates, insurance, maintenance, property management etc. If the total costs are less than the rental income the profit is taxable. None of the costs of renting elsewhere can be deducted from the rent the company generates as these are private and domestic expenditure of yours.
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