Ask Mark Withers, director of Withers Tsang & Co questions relating to Tax and Asset Structures
Mark Withers and his team at Withers Tsang & Co specialise in advising on property related transactions, valuation and restructure services and tax planning.
I am selling a property in Australia and will have to pay capital gains. The property has always had losses. Can these losses offset the capital gain? I know if you work in Australia and are paying taxes you are not able to offset the rental loss against the capital gain.
What is the tax position where one party in a long term relationship purchases a property solely and rent/board is paid by the other party? A section 21 contracting out of PRA would be done. Does the owner need to declare this rent/board as income?
I am keen to know if I have to declare my rental income given my situation. I have heard differing views on this. We had to move overseas for a year and a half for my wife to do her training and this meant we put our family home up for rent.
We will come back to our house on our return, so it's just a temporary move. Do we need to declare our rental income or since our 'intention' was not to make it into a rental property and only rented it out of necessity. Are we exempt from any income?
One tax advisor told us that we don't have to declare income, as our intention wasn't to make money and it is for only a temporary period of time. Is that right?