22. So I will have to pay tax on the deemed income from the whole of my house?

22. So I will have to pay tax on the deemed income from the whole of my house?

Answer

No, the owner is only up for a deemed minimum income on the equity you own in the asset. So if you own a $1m house, but have a $600k mortgage, you’d be deemed to have a minimum taxable annual income worked out on the $400k equity you have. Some people have responded to that saying they’d increase their debt but that wouldn’t be rational. It’s likely that mortgage rates would be higher than the deemed minimum income rate.


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