Private ruling: Rental income
Date of advice: 30 May 2022
Published: August 2022
Ruling period: Year ended 30 June 2020 | Year ended 30 June 2021 | Year ending 30 June 2022
Date scheme commenced: 1 July 2019

Ruling: Q1: Are you required to declare any rental income from the property? | A1: 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.

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