Tax on rent in child's house

[Barbuoy]

Hi guys. I am thinking of investing my daughters money on her behalf. I want to buy a house in her name using money she has build up on deposit and a loan. If the house is rented will the rent be taken to be part of my taxable income? Or can she be assessed in her own right. My daughter is 8 and so if fully dependant on me.

 

[peteb]

How is it investing on her behalf when you will be taking out the loan and you will owning the property?

Stick it in prize bonds. Better return.

 

[Steven Barrett]

An 8 year old can't take out a loan as the banks can't enforce the contract against a minor.

You can look at setting it up under a trust structure for her benefit though. Trusts are not tax exempt though.

If you buy it in your own name, it will be taxed as income in your own hands. You can offset 75% of the interest against the rent. Also any other costs in the maintenance etc of the investment property.


Steven
www.bluewaterfp.ie