Tax with Max: Living in an investment property

Working out negative gearing arrangements, conducting repairs, considering capital gains tax, contemplating a corporate trustee arrangement and more.

Summary: In a situation where someone wishes to purchase an investment property with their former partner, negative gearing arrangements may be considered. If one owner lives in the property they can pay rent to the other, who can claim negative gearing against income earned. But the resident of the property cannot claim negative gearing. The only exception may be if a family trust is used.

Key take-out: Legally a person cannot own a property and rent it to themselves.

Key beneficiaries: SMSF trustees and superannuation accountholders. Category: Superannuation.

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