Shaun asks:
(updated on Tuesday, April 24th 2012)
Excuse the naivety but I’m an accidental property investor so I haven’t spent much time researching these matters. About six months ago we relocated due to a job change and are currently renting. The house we own (and moved from) is on the market but we put tenants in it. This was intended to be short term so not much thought was put into the tax structure. The property is worth around $190,000 to $200,000 (RV$178,000) and we receive $250 per week. At present, we haven’t even paid income tax on the rent. Due to the house not selling, we are firstly thinking we need to spend some money and give it a bit of a tidy up (new kitchen, exterior paint etc) and secondly we need to be positioned for it to remain tenanted in the medium to long term. In regards to tax, what structure should we look into and what costs are involved? We need to keep in mind that the house could sell at any time so we wouldn't want to pay huge amounts in setting up a company and or transferring titles.
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