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Additional income

 
(@frustrated_alienated_father)
New Member Registered

Hi, I appreciate this has sort of been addressed, but my circumstances are slightly different and just wanted to see if there was any constructive advice. 

I have a rental property as a legacy of the divorce.  We took a second mortgage against it for a large extension at the 'family home' which she was essentially gifted by the judge.

The property rent is £650 (current market value), and the associated 2 mortgages plus additional costs for the property currently equate to circa £950.  The property is currently essentially negative equity and makes no sense selling atm. 

CSM state I have a 'comfortable' income of £7,800, even though as they have requested my self-assessment this is clear loss to myself. 

I've thought about creating a business account for the house where I received no income - is this very nieve?

Surely income has to go through approved deductions or is based on a degree of basic economics?

Constructive comments and assistance will be greatly appreciated. 

Quote
Topic starter Posted : 09/06/2024 9:34 am
(@dadmod2)
Illustrious Member

Hi,

I recommend you join this support group for paying parents, lot of experienced members there:

 

https://www.facebook.com/share/zXVqqqzmc1gQoLQu/

 

 

ReplyQuote
Posted : 10/06/2024 9:57 am
(@dadmod4)
Illustrious Member

I would recommend you get financial advice on what you are suggesting - unfortunately, the tax law changed a while back so that loans against a rental property could not be used to offset tax on income (and even before that, any loan on a rental property had to be for the purchase/imrovement of that property, not your own property), so I would say that unfortunately, your rental income is fully taxable, and therefore counts towards your maintenance calculation. However, as I said, get professional advice on this as there may be something I'm not aware of.

ReplyQuote
Posted : 10/06/2024 12:22 pm
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