Poor old Mr Tabone. He was renting his home from his unit trust and the ATO disallowed his deductions. It went to the Adminstrative Appeals Tribunal and he largely lost. The case is not authority for the general proposition that in all cases you can't do what he tried to do (altho I must say I'm not yet convinced you can). What it does show is all the things NOT to do if you want to go down this path. See how many things you can spot that Mr Tabone got pulled up on. Of course detailed legal and tax advice should be obtained if you're thinking about anything like this. Cheers N.