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X gets huge rent from a rental property, but is not declaring it to Child Support

My X is getting a huge rent for a rental property, but is either not declaring it to Child Support, or hiding it some how from the taxable income.
 I dont how my X is doing this, or hiding the rental income, some said it may be a trust or in a business name.
I mentioned it to CSA 2012, and again recently, but they said they did not pursue it, and are not interested.

Why is CSA not pursuing it?
Is there some way of finding out and to bring it to CSA?
You will need to have proof of the rental income. Can you obtain the name of the persons in the rental property? If it is a cash deal you could contact the ATO fraud hotline and lodge a complaint to them that there is rental property, provide the address, and let them investigate it. Does the owner of the rental property have another address? This is a dead giveaway if they have two addresses but have their mail sent to only one. Once the ATO accept there is an income they will contact CSA to advise of the extra income.
Not sure HOW i would get proof of the rental income.
Not sure HOW i would obtain the name of the persons in the rental property?

Apparently was rented through a rental company, (managing real estate agent as I have seen the ad, and has said for time is now LEASED)?

Yes the owner has a home address as it is a rental property. (no sure this is a dead giveaway, as could have property but not renting out).

As I posted … my X is getting a huge rent for a rental property (I have seen the ad by the managing agent), but is either not declaring it to Child Support, or hiding it some how from the taxable income.
I don't how my X is doing this, or hiding the rental income, some said it may be a trust or in a business name.
I mentioned it to CSA 2012, and again recently, but they said they did not pursue it, and are not interested.

Why is CSA not pursuing it?
Is there some way of finding out and to bring it to CSA?

Can i also use this in my Case to The Family Court?
.
Lodge a COA and provide the "evidence" of what you believe your ex is doing, provide any factual details you have such as copies of rental ads, photos of the "leased" sign etc.

CSA will looking into trusts (as does the ATO) to assess income avoidance and look at the distribution of any trust involved.

"I know that you believe you understand what you think I said, but I'm not sure you realise that what you heard is not what I meant."

 
I don't know your ex situation but is it possible that the amount he receive in rent is equal to the amount he has to pay for the mortgage / insurance of the rental?  In that case there is no negative gearing so nothing to add back.  Is the rental his only source of income?
Further to what 'newguy' added, if the mortgage and rent are the same, there is no income at all.  
I am not sure if this would work, but maybe you could use the Real Estate company tenanting the property as the contact and proof for CSA.  ??
Fluffs the rental income is only part of the equation. As mentioned above you would need to know all the offsetting expenses to determine the net effect of the investment property.

I have rarely seen investment properties producing hugh net returns. If this was the case it would probably require a low mortgage. For the mortgage to be low money must have been invested from somewhere else and from wherever it came from it was probably earning a similar income return.

If I was you I would forget about it as i think the personal worry and investment will be outweighed by the benefits. I would spend the time that you be investigating this into increasing your own income and improving your own personal position. You may well find that the amount you can earn will be significantly more than the marginal amount your CSA income may change.
I think we are missing the point.

If no income …. WHY IS IT NOT DELARED TO CSA ?
Why is CSA not interested and not doing anything ?
Is this not Fraud ?
Fluffs if the net income is zero then there is nothing to declare. Say for example the rent income received was $25k and then the offsetting expenses of interest on the mortgage, rates, land tax, etc etc was $25k, the net income would be zero.

Your X could have legitimately included all this in the tax return but it will have no impact on the CSA payments as the the income is nil.
It is not the taxpayer that reports the rental income to the CSA, it is the ATO that passes this information on to the CSA, as a bulk figure of the ATI, (Adjusted Taxable Income) when the payee's tax return is lodged.

This is why the CSA will have no idea as to how the ATI has been arrived at.

If you are so bent out of shape about it, then the only procedure is to lodge a Change of Assessment, Reason 8.
Twentypercent said
Say for example the rent income received was $25k and then the offsetting expenses of interest on the mortgage, rates, land tax, etc etc was $25k, the net income would be zero.

Your X could have legitimately included all this in the tax return but it will have no impact on the CSA payments as the the income is nil.
  That works fine for the payee, but put the scenario around the other way onto the payer and you will find that the offsets will get added back as income.
Taylor can you tell me what offsets you are referring to as the example I provided above should work exactly the same regardless if you are the payee or payer.
Twentypercent said
   should work exactly the same regardless if you are the payee or payer.
  Yeah should work the same.

Bank interest, Rates and Tax's, Repairs and maintenances

I was referring to the differences between payer and payee that are treated different and shouldn't be, unless you are prepared to jump up and down because the CSA tend to overlook payee's income. Thats what I have found with my scenario.
Taylor are you saying that you have an investment property that is positively geared and the CSA have added to your income the bank interest, land tax, rates and repairs and maintenance costs.

If so have the CSA done this directly or was it a result of SSAT review.
The CSA made up my income for CS. Over estimate to the information that I had supplied them. Then I took the matter to the SSAT.

SSAT added back bank interest and fees as part of my CS income, then added that onto the CSA over estimate income, then

The Family Magistrate who didn't listen to a word I said agreed with the SSAT decision.
Taylor when you say bank interest are you referring to the interest payment you make to the bank for your mortgage on your investment property?
Bank Interest being claimed on my Tax against the property, not the interest payment.

Basic accounting. Eg: Rental income $24k less bank interest on the loan, less bank fees, rates & tax's, matintences costs. Total costs $20k. That leaves $4k per annum as an income to be added onto CS. Does that make sense.
My bank interest and fees apx $9.6K was added onto the $4k then added onto my CSA made up income.

Unless Fluffs is prepared to fight the matter with the X the CSA will not do anything about it, but boot on the other foot the CSA seam to jump over the payers.
Taylor you cant seem to resist coming on here and gum flapping, the strings on your violin must be worn out by now. Twentypercent asked you a straight question about an investment property and you dance around an answer like a ballerina, try opening a dance studio.
taylor said
The Family Magistrate who didn't listen to a word I said agreed with the SSAT decision.
He probably did not understand you or you put the same effort and logic to him as you do to this site, lucky he didnt offer you an afternoon in the cells.


Move on with your life or at least put your brain into gear before posting here.
Taylor something is very strange about this and I have not heard of this before.

You have a mortgage on a rental property and the bank is charging you interest on that mortgage. In your tax return you have claimed a deduction of this interest against the income earned from the property.

Now if I understand you correctly you are saying that the CSA have rejected this interest and added it back to your income. If this has happened it is crazy. The only reason I could possible think this could occur is if you have mixed this investment mortgage with your personal mortgage or increased the mortgage for your personal expenditure then there may be an argument that some of this interest is not related to the rental property.

There must be some other explanation for this, as if this applied to everyone no child support payer would ever own an investment property of the interest on the loan was not aloud by child support.

Maybe you should just sell the property.
Sorry to tell you this guys but the CSA have added back the interest I claimed against our property that is part of a SMSF.

Yes they do add it back for the life if me I can't explain. The loan is not mixed with personal and investment???

In actual fact the principal figure of the loan remains unchanged as we only pay interest at the moment.

The other thing I don't understand is why if your business figure is say -29,000 and you have $10000 in interest claimed from the investment property the CSA add it back from zero eg and set the payable amount at $10000 instaed of -19,000.
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