I sold my old house to my brother in law who had lived in it for about a year beforehand. He was paying rent but slightly less than the mortgage then decided he wanted to buy it.
I've now had a letter from the tax office saying ive got 30 days to declare my income and 90 days to pay and its made me panic a bit! Thus was only meant to be a casual arrangement and was to do is both a favour so nothing was ever in writing or worked out for tax. I feel like im going to get a huge bill and tbe money i had put aside for my deposit on my next house is going to be swallowed up!
Please help me if anyone has been through this - what am I supposed to do and how do I work out the interest on tbe mortgage repayments? It says that these are deductable? He was only paying 400 a month and the mortgage was 420.
Im in rented myself amd was really hoping to buy very soon and get back into my own home. This isnt going to happen now i feel. My ex already wants half this money but the house was mine before i met him and he went to uni for 4 years of us being together - i paid all the bills.
Sorry for rambling- I went to voew anpther house today after losing out on one tbe other week and was hoping I cpuld male the fresh start I really need.
This has made me feel sick.