Should I set up LAQC if I take in a tenant?
(updated on Tuesday, January 06th 2009)
Our Experts Answer:Where you have a flatmate, in a situation such as this, IRD does not require you to declare the income. It also means that you can't claim any of the expenses, which would have to be apportioned as you can't claim 100% seeing as your flatmate is not taking over 100% of the house, just one bedroom and a portion of the common areas (eg bathroom, kitchen, lounge). Putting the house into an LAQC would not really be an option because you also are living in the house. Generally, you are better off by not declaring the income.
Kenina Court is a director of Acorn Solutions Limited, an accounting firm dedicated to working with clients to help them create wealth. She is an avid property investor, entrepreneur and seminar presenter on asset protection and wealth strategies.
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