Impact of Rental Income Or Loss on Family Assistance Benefits

Do you have a rental property that is currently not occupied? This loss of rental income may affect benefits you are receiving through Working for Family Tax Credits (WFTC), but how it impacts assistance is not always clear-cut.

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Working for Family Tax Credits

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Family assistance or WFTC is based on how many children are in your family, the amount of income for your household, and how many hours are worked each week. Generally speaking, a family of five with an income less than 5,000 will qualify for this entitlement.

Rental Losses and WFTC

So the question is: Are rental losses eligible to be deducted from your income for the purposes of qualifying for WFTC benefits? The answer depends on your specific situation.

If you own a Loss Attributing Qualifying Company (LAQC) through which the rental property is managed, then no, rental losses do not affect your household income levels. Whilst it does affect the amount of taxes you owe, the loss cannot be subtracted from your income for the purposes of WFTC entitlement.

On the other side of the coin, if you are the personal owner of the rental property in question, then you can, indeed, subtract a loss of rent from your annual household income. The amount of your WFTC benefits will increase as rental income decreases.

One more issue that arises is whether or not you own a business. If the rental property is part of your personal business and it experiences a loss, then this does not affect your income as far as WFTC support.

How Does the IRD Define a Business?

Does your rental property qualify as a personal business? The answer seems to be in the numbers; one rental does not a business make but two or more, even outside of an LAQC structure, will probably be viewed as a commercial enterprise. In the former case, rental loss can be deducted from household income; in the latter case not so.

Whilst it is impossible to determine exactly what rationale was used to create this policy, it is doubtful the government wished to eliminate depreciation deductions on rental properties as a determination of WFTC benefits. If so, rentals would not be taken into consideration at all. Instead, the IRD seems to be discouraging entrepreneurs with investment real estate from qualifying for the family entitlement.

What is perhaps the most confusing policy is that child support assessments are based on losses from an LAQC. Of course, these are two different policies, yet the similarities beg the question of why the rules vary in each instance.

Is it best to manage rental properties personally or through an LAQC if you are seeking WFTC benefits? There are other factors to take into consideration, such as whether the risk involved in personal investment is greater than the Family Assistance support. Tax liability, payroll concerns, and debt structure are additional issues.

Clearly, the structuring of your rental properties in regards to WFTC benefits is dependent on many factors. The rewards of one must be weighed against the negative impact of the other.

Impact of Rental Income Or Loss on Family Assistance Benefits

Paul Easton is working with Gilligan Rowe & Associates are New Zealand Accountants and are a specialist Accountant firm and experts in property and family trusts.

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A Review of the Organic and Natural Enterprise Group Income Opportunity

The Organic and Natural Enterprise Group (or ONE group) is a company that offer you the chance to earn income using several different marketing strategies selling certified organic health, wellness and cleaning products. Their product range includes skincare, hair care, body and oral care products, cosmetics as well as household cleaning products and health care products.

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They all of which have been certified as organic by leading agencies world wide such as the US department of Agriculture and the official organic certification organizations in Europe and Australia. The health and wellness industry and the organic industries are both rapidly growing markets with high appeal to consumers. The Organic and Natural Enterprise Group are based in Australia, but are an international company with a team of distributors and retailers world wide.

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The Organic and Natural Enterprise Group is committed to being environmentally friendly and not only produce and market certified organic products but use environmentally friendly packaging for both their products and shipping as well as completely offsetting all of their carbon consumption in both production and administration so that the entire company is carbon neutral.

This environmentally friendly attitude of the company is also attracting customers to their products as many people feel hypocritical when they are being environmentally friendly at home but through lack of choice are forced to buy products that are manufactured etc in ways that may be doing damage to the environment.

One of the benefits of the business opportunity offered to you by the Organic and Natural Enterprise Group is the huge potential for repeat sales. The products are high quality, reasonably priced products that people use everyday. Repeat sales are a must in whatever business you decide to enter.

You want to be able to build a loyal customer base that will continue to buy from you. The fact that the products are used every day in several areas of their homes will also encourage other people to join your distributor team. The Organic and Natural Enterprise group offer a fantastic bonus system to you for any distributors you bring into the organization.

You can choose to market your business in several ways, the Organic and Natural Enterprise Group provide you with a website including a online store and shopping cart, and allow you to build your own web site as well if you are so inclined.

They also provide high quality training and tools to teach you how to market the products through the web sites, in home demonstrations, at markets or shows etc or even with newspaper and other advertising techniques. Retail sales are also allowed in several countries and many beauticians, hairdressers etc now stock the products in their shops.

If you are considering different business opportunities, the income opportunity provided by the Organic and Natural Enterprise Group should be at the top of your list of potential candidates. As well as the profits to be made by marketing the products and the generous bonus system; the environmentally friendly and responsible attitude of the company will also bring you sales and the ability to introduce distributors to grow your business.

A Review of the Organic and Natural Enterprise Group Income Opportunity

You can read our Unbiased, expert review of Organic and Natural Enterprise Group from Brian Garvin and Jeff West at MLM Review Kings. This article may be used royalty free provided bio & links remain intact.

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