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Furniture rent income as business income

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karthik hs

1 Points Posted on 29 July 2021

Dear sir/madam,

I'm a commercial building owner. A new tenant is asking me to get it furnished. Can any of my family member(spouse/children) invest and provide furniture on rental basis or as vendor (furniture business) and collect rent for that as business income?

Building rent for me and furniture rent for other family member who has less income?

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Quick Summary

A commercial building owner is considering having a family member furnish a tenant's space and collect rent as business income. This arrangement is permissible, provided proper documentation, such as furniture ownership and purchase invoices in the family member's name, is in place. This strategy can potentially allocate income to a family member with a lower tax bracket.