Quote Originally Posted by artemis View Post
Certainly, quite common with trusts and companies owning houses. And with family buying and renting to other family - also common. In those cases, the tenant can effectively be the owner as the property will eventually pass by sale, gift or inheritance. Not exactly what your question was, but more likely than personal ownership renting to the owner.

There are tax implications. If expenses are claimed against rent, IRD require market rent to be either paid or deemed to be paid. If that doesn't happen, IRD will consider it tax evasion.

I rent a property to family, and make sure the rent is within the range on the Tenancy Services site market rent page.
If the property is run at a loss it is not likely to create a deducible loss unless you can come up with a damn good reason for the structure. Any scheme with no other purpose than avoiding tax is not recognised by IRD. Otherwise we would all move out and swap with our neighbours.