This Q&A about declaring the Building Manager’s rent on a lot owner’s tax return in Victoria has been supplied by Dan Slattery, Legal & Mediation Services.
Question: Our building has a residential Building Manager who pays a small amount of rent on his apartment. Does a portion of his rent need to be declared on my tax return?
I am a relatively new apartment owner occupier in Victoria. Our building has a residential Building Manager who pays a small amount of rent on his apartment.
I have just been advised that a portion of his rent must be declared on my tax return. I have tried researching and contacting our Strata Manager and Victorian Consumer Affairs but cannot get a response.
Answer: The Owners Corporation Manager should write to all Lot owners setting out the amount of income derived from external sources.
What should happen in these situations is that the Owners Corporation Manager should write to all Lot owners setting out the amount of income derived from such external sources.
On the basis of Lot Liability the OC Manager should be advising what proportion (dollar amount) each Lot owner should declare as part of their taxable income and advise each Lot owner to add that amount to their annual income for such taxation purposes. That is the correct approach to take in these circumstances.
Have a question about lot owner tax returns regarding income derived from external sources in Victoria or something to add to the article? Leave a comment below.
This article is for reference purposes only and is not intended to be a comprehensive review of the developments in the law and practice or to cover all aspect of the subject matter. It does not constitute legal or other advice and should not be relied upon this way. Readers should take legal or other advice before applying the information containing in this publication.
This post appears in Strata News #278