Can I host a room to an immediate family member?

[Jo492]

Hi all, have googled without luck so hoping someone here can help. 

My adult daughter is moving home next year (into one of the rooms I host) for 12months whilst studying. We discussed paying board,  and being that all income is supposed to be claimed with the ATO I thought I could just as easy do it through Airbnb which would also mean my tax deductions would continue as is. (I host two rooms) 

My questions are 

1- will there be an issue with AIRBNB with me hosting at a reduced price for 12 months?

2- will there be an issue with the ATO with me hosting my own child (26yrs old) and at a reduced rate (apparently it’s an issue if you do this as a landlord?) 

thanks in advance 

Jo 🙂

[David5641]

I think just unlist your property and have a direct arrangement with your daughter. Once she moves out, then list the room again.

[Jo492]

The reality is that a main motivator for me hosting is to reduce my taxable income. I don’t mind if Airbnb runs at a loss as I work full time (and pay a lot of tax ).

If it does run at a loss (I don’t charge below recommended pricing) the tax benefits are as beneficial as the small income from hosting. 

So I would like to keep this room as a hosted room but just didn’t know if there would be issues with me hosting it at a much lower price and to a family member. 

[Emilia42]

I would think your small tax benefit would be eaten up by the Airbnb service fees charged to you and your daughter.