Tax evasion?

[cassa333]

Just wondered on this one.

A friend has a property they let out. I think they have had it for about 6 yrs and have always made a loss. They are looking at selling and making a profit that way in a few years.

Should htey do a tax return? I remember a couple of years ago he said he had a form from the tam man and when he filled it in there was a question about rental property. Because he didn't make a profit he put no by it?

I recon he should do a tax return but he says as he hasn't made a profit he doesn't need to.

[woofgang]

well put it this way, if he doesn't and he's wrong he's in the doo doo.......

[bednobs]

when you say he dosen't profit, are you saying he pays people to live there??!

[cassa333]

Sorry I might not have explained it properly.

He hasn't made a profit. Overall there is a loss. No year of rental has yealded a profit.

[dzug2]

But there is still the possibility of capital gains tax even if he's clear on the income tax front