House Expenses with peppercorn / popcorn tenancy
Discussion
Not sure if this should be here or in Finance :
Currently "renting" a house out to stepdaughter and her boyfriend. We have a tenancy agreement for various reasons, but the rent is £1 per year.
They only moved in last weekend - and it's already cost me money. Partly due to things the previous tenants broke, but mostly due to a shower which wasn't really working properly and that I wasn't made aware of with the previous tenants.
When I do my tax return, I will modify the projected additional income to zero.
But what about expenses? Technically - there is a rental agreement, the house is rented - and I have incurred costs, which I should be able to claim tax back on.
But something about it feels a bit dodgy.
Does anybody else have a property they "rent" in a similar way - and do you declare a loss?
Currently "renting" a house out to stepdaughter and her boyfriend. We have a tenancy agreement for various reasons, but the rent is £1 per year.
They only moved in last weekend - and it's already cost me money. Partly due to things the previous tenants broke, but mostly due to a shower which wasn't really working properly and that I wasn't made aware of with the previous tenants.
When I do my tax return, I will modify the projected additional income to zero.
But what about expenses? Technically - there is a rental agreement, the house is rented - and I have incurred costs, which I should be able to claim tax back on.
But something about it feels a bit dodgy.
Does anybody else have a property they "rent" in a similar way - and do you declare a loss?
Your issue will be that the endeavor is not entered into with the aim of making a profit. As such you won't be able to deduct the losses or it would be a tax deductible expense for supporting your daughter.
A rent fee period would be fine as then the rent went to a commercial figure later.
The costs incurred putting right the property after the last tenants left would be deductible as they come off the profits you made when you rented it to them.
Edit. If they were " guardians " of the property whilst you found a suitable tenant that would seem legitimate.
A rent fee period would be fine as then the rent went to a commercial figure later.
The costs incurred putting right the property after the last tenants left would be deductible as they come off the profits you made when you rented it to them.
Edit. If they were " guardians " of the property whilst you found a suitable tenant that would seem legitimate.
Your issue will be that the endeavor is not entered into with the aim of making a profit. As such you won't be able to deduct the losses or it would be a tax deductible expense for supporting your daughter.
A rent fee period would be fine as then the rent went to a commercial figure later.
The costs incurred putting right the property after the last tenants left would be deductible as they come off the profits you made when you rented it to them.
A rent fee period would be fine as then the rent went to a commercial figure later.
The costs incurred putting right the property after the last tenants left would be deductible as they come off the profits you made when you rented it to them.
Gassing Station | Homes, Gardens and DIY | Top of Page | What's New | My Stuff