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Edited version of private advice
Authorisation Number: 1051987547161
Date of advice: 30 May 2022
Ruling
Subject: Rental income
Question
Are you required to declare any rental income from the property?
Answer
No.
Based on the information provided to the Commissioner you do not have a beneficial ownership in the property.
It is possible for legal ownership to differ from beneficial ownership. Where beneficial ownership and legal ownership of an asset are not the same, there must be evidence that the legal owner holds the property on trust for the beneficial owner.
The Commissioner is satisfied that you do not have a beneficial ownership in the property, and you are not required to declare any rental income from the property in your tax returns.
This ruling applies for the following period:
Year ended 30 June 2020
Year ended 30 June 2021
Year ending 30 June 2022
The scheme commences on:
1 July 2019
Relevant facts and circumstances
You and your parent purchased the property.
The property has a mortgage registered on the title in your parents' name.
You do not pay any of the mortgage.
You are on the title so that this property can pass to you as the surviving owner without the need for probate when your parent passes away.
The property is rented out by your parent.
You do not receive any rental income from the property.
You do not claim any deductions for the property.
You do not pay any expenses associated with the property.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 6-5
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