Hi, I'm in Financial IT and while I know a bit about the systems behind the $, I have so much to learn about the $ themselves!! I have a question which seems very complicated to me, but may be easy peasy for all of you! My ex partner and I own a property together (tenants in common 50/50) in the suburbs which I live in, while he rents in the city (our outgoings are equal as we share both the mortgage costs and his rent). This has been working well and was a good solution 4 years ago but as time wears on it is obviously not very financially savvy. As he wanted to use more of his available capital and purchase a substantial investment property we agreed that he would buy out my half of the house and that I would rent from him and buy myself an investment property. My question is, when I buy an IP could he rent it from me? I mean, obviously we could do that, but for taxation purposes would we remain eligible to claim as IPs or does the mutual arrangement make us ineligible? I've tried to find the answer on the ATO website and a number of investment sites, but with no luck, so any advice you may have before I go to my accountant would be appreciated!