First PPOR & First Home Owner Grant & Sharing

Viewing 5 posts - 1 through 5 (of 5 total)

JULES1
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@jules1
Join Date: 2003
Post Count: 147
December 30, 2005 - 6:41 am
I have a PPOR & received the FHOG first home owner grant this year.
Under these conditions is it possible for me to rent one of the bedrooms of my house out to say a flat mate to share with me, and still keep the First Home Owner Grant.
It would still be my PPOR but I would be sharing it.
Would love to have an answer on this one as my mortgage is getting a bit heavy for me at the moment and some extra income would be great.
Would I have to account for this income in my tax return.
Juls
JULES1
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Derek
Member
@derek
Join Date: 2004
Post Count: 3,544
December 30, 2005 - 7:36 am
Hi Jules,
Provided you meet the PPOR residential requirement then you are able to rent out a room or part of the property.
Check out http://www.firsthome.gov.au/ and then go to the bottom of the page and bring up the relevant state authority. This question is one of FAQ under residency.
Any rental earned under this arrangement should be declared as income in your tax return. The flip side of this is that you are then able to claim apportioned costs too eg rates, insurance, repairs, depreciation and so on.
The apportioning is usually done on a sq m used basis. I suggest you search the ATO website for further clarification on this aspect of your tax return.
Derek
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http://www.pis.theinvestorsclub.com.au
0409 882 958
JULES1
Participant
@jules1
Join Date: 2003
Post Count: 147
January 3, 2006 - 12:30 am
Derek
thats wonderful news, and just great advice as usual. I will check out that website. thanks for your response.
Jules
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Terryw
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@terryw
Join Date: 2001
Post Count: 16,213
January 3, 2006 - 6:15 am
Just watch out for CGT. you may lose the CGT exemption (paritally) on your house.
BTW, I think Derek meant the ATO website.
Terryw
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Derek
Member
@derek
Join Date: 2004
Post Count: 3,544
January 3, 2006 - 8:21 am
Hi Terry,
Yep I did mean ATO – have edited the error in the original post [exhappy]
Derek
[email protected]
http://www.pis.theinvestorsclub.com.au
0409 882 958